DELTA ELECTRONICS, INC. AND SUBSIDIARIES · delta electronics, inc. and subsidiaries consolidated...
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DELTA ELECTRONICS, INC. AND
SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
REPORT OF INDEPENDENT ACCOUNTANTS
JUNE 30, 2015 AND 2014
------------------------------------------------------------------------------------------------------------------------------------For the convenience of readers and for information purpose only, the auditors’ report and the accompanyingfinancial statements have been translated into English from the original Chinese version prepared and used inthe Republic of China. In the event of any discrepancy between the English version and the originalChinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’report and financial statements shall prevail.
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REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE
To Delta Electronics, Inc.
We have reviewed the accompanying consolidated balance sheets of Delta Electronics, Inc. and
subsidiaries as of June 30, 2015 and 2014, and the related consolidated statements of comprehensive
income for the three-month and the six-month periods then ended, of changes in equity and of cash
flows for the six-month periods then ended. These financial statements are the responsibility of the
Company’s management. Our responsibility is to express a conclusion on these financial statements
based on our reviews. We did not review the financial statements of certain investments accounted for
under the equity method. These long-term investments amounted to $6,221,419 thousand and
$5,882,200 thousand, constituting 2.77% and 3.00% of the consolidated total assets as of June 30,
2015 and 2014, respectively, and the share of profit and other comprehensive income of associates and
joint ventures accounted for under equity method was $308,495 thousand and $270,304 thousand,
constituting 13.51% and 6.14% of the consolidated total comprehensive income for the three-month
periods ended June 30, 2015 and 2014, respectively, and $560,039 thousand and $566,744 thousand,
constituting 10.62% and 6.09% of the consolidated total comprehensive income for the six-month
periods ended June 30, 2015 and 2014, respectively. Those financial statements were reviewed by
other independent accountants whose reports thereon have been furnished to us, and our conclusion
expressed herein, is based solely on the review reports of the other independent accountants.
Except as explained in the following paragraph, our reviews were made in accordance with the
Generally Accepted Auditing Standards No. 36, “Review of Financial Statements” in the Republic of
China. A review consists principally of inquiries of company personnel and analytical procedures
applied to financial data. It is substantially less in scope than an audit in accordance with generally
accepted auditing standards in the Republic of China, the objective of which is the expression of an
opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an
opinion.
As explained in Notes 4(3)B and 6(9), we did not review the financial statements of certain
insignificant consolidated subsidiaries and investments accounted for under equity method, which
statements reflect total assets (including investments accounted for under equity method) of
$15,047,795 thousand and $17,630,872 thousand, constituting 6.71% and 8.99% of the consolidated
total assets, and total liabilities of $3,859,145 thousand and $2,734,698 thousand, constituting 3.13%
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and 2.91% of the consolidated total liabilities as of June 30, 2015 and 2014, respectively, and total
comprehensive income (including share of profit and other comprehensive income of associates and
joint ventures accounted for under equity method) of $165,157 thousand and $47,795 thousand,
constituting 7.23% and 1.09% of the consolidated total comprehensive income for the three-month
periods ended June 30, 2015 and 2014, respectively, and $82,688 thousand and $457,007 thousand,
constituting 1.57% and 4.91% of the consolidated total comprehensive income for the six-month
periods ended June 30, 2015 and 2014, respectively. These amounts and the information disclosed in
Note 13 were based solely on the unreviewed financial statements of these companies as of June 30,
2015 and 2014.
Based on our reviews and the review reports of other independent accountants, except for the effect of
such adjustments, if any, as might have been determined to be necessary had the financial statements
of certain consolidated subsidiaries, investments accounted for under equity method and the
information disclosed in Note 13 been reviewed by independent accountants, we are not aware of any
material modifications that should be made to the consolidated financial statements referred to above
for them to be in conformity with the “Rules Governing the Preparation of Financial Statements by
Securities Issuers” and IAS 34, “Interim Financial Reporting” as endorsed by the Financial
Supervisory Commission (FSC).
As explained in Note 3(1), commencing 2015, Delta Electronics, Inc. and subsidiaries have adopted
the 2013 version of IFRS and the effect of adoption on the financial statements for prior periods was
adjusted.
PricewaterhouseCoopers, Taiwan
July 28, 2015-------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results ofoperations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions otherthan the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of suchfinancial statements may differ from those generally accepted in countries and jurisdictions other than the Republic ofChina. Accordingly, the accompanying consolidated financial statements and report of independent accountants are notintended for use by those who are not informed about the accounting principles or auditing standards generally accepted inthe Republic of China, and their applications in practice.As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liabilityfor the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from thetranslation.
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
JUNE 30, 2015, DECEMBER 31, 2014, JUNE 30, 2014 AND JANUARY 1, 2014(EXPRESSED IN THOUSANDS OF DOLLARS)
(THE JUNE 30, 2015 AND 2014 AMOUNTS ARE UNAUDITED)
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US Dollars New Taiwan Dollars
Assets Notes June 30, 2015 June 30, 2015
(adjusted)
December 31, 2014
(adjusted)
June 30, 2014
(adjusted)
January 1, 2014
Current assets
Cash and cash equivalents 6(1) $ 1,952,653 $ 60,258,877 $ 73,459,818 $ 60,504,492 $ 59,023,870
Financial assets at fair value through profit or loss - current 6(2) 1,752 54,071 39,626 104,811 82,749
Available-for-sale financial assets - current 6(3) 17,990 555,157 688,324 732,997 686,511
Derivative financial assets for hedging - current 6(5) - - - - 13,340
Notes receivable, net 69,594 2,147,669 1,971,006 1,787,780 1,535,567
Accounts receivable, net 6(6) 1,385,040 42,742,337 42,956,211 39,637,351 41,121,837
Accounts receivable - related parties 7 53,296 1,644,704 1,260,102 1,177,518 1,083,328
Other receivables 14,768 455,744 465,368 514,180 407,045
Other receivables - related parties 7 689 21,257 43,507 27,672 157,570
Current income tax assets 29,314 904,616 400,804 - 5,957
Inventories 6(8) 724,992 22,373,268 21,571,975 18,716,271 18,041,829
Prepayments 187,530 5,787,180 4,678,972 4,004,794 4,183,426
Non-current assets held for sale - net - - - 34,548 -
Other current assets 8 15,310 472,492 296,443 210,676 160,072
Total current assets 4,452,928 137,417,372 147,832,156 127,453,090 126,503,101
Non-current assets
Financial assets at fair value through profit or loss - non-current 6(2) 7,425 229,140 115,924 163,735 109,810
Available-for-sale financial assets - non-current 6(3) 200,103 6,175,190 6,967,099 6,857,648 7,677,790
Financial assets carried at cost - non-current 6(4) 24,191 746,522 748,761 400,786 400,605
Investments accounted for under equity method 6(9) 219,546 6,775,198 7,016,737 6,474,103 6,607,134
Property, plant and equipment 6(10) 1,220,571 37,666,822 36,814,759 35,623,106 37,194,762
Investment property, net 6(11) 69,649 2,149,356 2,223,848 2,189,034 1,960,453
Intangible assets 6(12) 812,742 25,081,213 11,706,015 10,500,889 10,857,876
Deferred income tax assets 173,423 5,351,831 4,348,083 3,748,441 3,344,842
Other non-current assets 6(13) 87,668 2,705,423 2,659,428 2,751,645 2,639,953
Total non-current assets 2,815,318 86,880,695 72,600,654 68,709,387 70,793,225
Total assets $ 7,268,246 $ 224,298,067 $ 220,432,810 $ 196,162,477 $ 197,296,326
(Continued)
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (CONTINUED)
JUNE 30, 2015, DECEMBER 31, 2014, JUNE 30, 2014 AND JANUARY 1, 2014(EXPRESSED IN THOUSANDS OF DOLLARS)
(THE JUNE 30, 2015 AND 2014 AMOUNTS ARE UNAUDITED)
The accompanying notes are an integral part of these consolidated financial statements.See review report of independent accountants dated July 28, 2015.
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US Dollars New Taiwan Dollars
Liabilities and Equity Notes June 30, 2015 June 30, 2015(adjusted)
December 31, 2014(adjusted)
June 30, 2014(adjusted)
January 1, 2014Current liabilities
Short-term borrowings 6(14) $ 394,437 $ 12,172,321 $ 5,801,298 $ 5,778,802 $ 4,561,722Financial liabilities at fair value through profit or loss -current
6(15)452 13,948 51,606 3,652 16,883
Derivative financial liabilities for hedging - current 6(5) - - - 12,931 2,644Notes payable - - - - 808Accounts payable 1,024,341 31,611,166 33,504,170 30,550,291 32,628,527Accounts payable - related parties 7 10,832 334,283 244,813 269,145 187,088Other payables 1,219,886 37,645,682 19,221,347 33,577,779 17,533,426Current income tax liabilities 41,764 1,288,842 1,698,484 1,492,694 1,390,013Other current liabilities 6(16) 149,258 4,606,099 4,102,644 3,473,099 3,046,701
Total current liabilities 2,840,970 87,672,341 64,624,362 75,158,663 59,367,812Non-current liabilities
Long-term borrowings 6(16) 674,607 20,818,373 26,468,103 6,569,160 18,827,664Deferred income tax liabilities 326,115 10,063,916 9,875,658 8,309,982 7,464,180Other non-current liabilities 6(17) 149,623 4,617,356 3,796,330 3,821,692 3,841,725
Total non-current liabilities 1,150,345 35,499,645 40,140,091 18,700,834 30,133,569Total liabilities 3,991,315 123,171,986 104,764,453 93,859,497 89,501,381
EquityShare capital
Share capital - common stock 6(19) 789,871 24,375,433 24,375,433 24,375,433 24,375,433Capital surplus
Capital surplus 6(20) 836,790 25,823,327 25,822,764 25,822,215 25,790,922Retained earnings 6(21)
Legal reserve 571,035 17,622,146 15,552,256 15,552,256 13,774,636Special reserve - - 527,556 527,556 4,074,505Unappropriated retained earnings 756,864 23,356,835 33,579,303 22,655,545 25,133,131
Other equity interestOther equity interest ( 172 ) ( 5,328) 3,064,085 ( 670,401) 419,768
Equity attributable to owners of the parent 2,954,388 91,172,413 102,921,397 88,262,604 93,568,395Non-controlling interest 6(22) 322,543 9,953,668 12,746,960 14,040,376 14,226,550
Total equity 3,276,931 101,126,081 115,668,357 102,302,980 107,794,945Significant contingent liabilities and unrecorded contractcommitments
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Significant subsequent events 11Total liabilities and equity $ 7,268,246 $ 224,298,067 $ 220,432,810 $ 196,162,477 $ 197,296,326
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF DOLLARS, EXCEPT EARNINGS PER SHARE DATA)
(UNAUDITED)
(Continued)~5~
US Dollars New Taiwan Dollars
For the six-monthperiod endedJune 30, 2015
For the three-month periods endedJune 30,
For the six-month periods endedJune 30,
(adjusted) (adjusted)
Items Notes 2015 2014 2015 2014
Sales revenue 6(23) and 7 $ 2,979,108 $ 48,732,287 $ 47,616,288 $ 91,935,272 $ 90,651,884
Operating costs 6(24)(28)(29)and 7 ( 2,188,872) ( 35,577,842) ( 34,553,428) ( 67,548,589) ( 66,151,640)
Gross profit 790,236 13,154,445 13,062,860 24,386,683 24,500,244
Operating expenses 6(28)(29)
Selling expenses ( 178,475) ( 3,121,375) ( 2,403,565) ( 5,507,746) ( 4,482,135)
General and administrative expenses ( 110,826) ( 1,904,943) ( 1,644,354) ( 3,420,093) ( 3,132,390)
Research and development expenses ( 208,883) ( 3,384,779) ( 3,032,015) ( 6,446,134) ( 5,797,295)
Total operating expenses ( 498,184) ( 8,411,097) ( 7,079,934) ( 15,373,973) ( 13,411,820)
Operating profit 292,052 4,743,348 5,982,926 9,012,710 11,088,424
Non-operating income and expenses
Other income 6(25) 48,103 828,325 759,048 1,484,464 1,571,416
Other gains and losses 6(26) ( 10,463) ( 240,007) 2,137 ( 322,877) ( 191,151)
Finance costs 6(27) ( 6,078) ( 130,481) ( 30,281) ( 187,561) ( 61,989)
Share of profit of associates and joint ventures accounted for underequity method
6(9)19,533 305,201 262,772 602,787 482,834
Total non-operating income and expenses 51,095 763,038 993,676 1,576,813 1,801,110
Profit before income tax 343,147 5,506,386 6,976,602 10,589,523 12,889,534
Income tax expense 6(30) ( 68,631) ( 1,292,978) ( 1,218,378) ( 2,117,948) ( 2,205,505)
Profit for the period $ 274,516 $ 4,213,408 $ 5,758,224 $ 8,471,575 $ 10,684,029
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF DOLLARS, EXCEPT EARNINGS PER SHARE DATA)
(UNAUDITED)
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US Dollars New Taiwan Dollars
For the six-monthperiod endedJune 30, 2015
For the three-month periods endedJune 30,
For the six-month periods endedJune 30,
(adjusted) (adjusted)
Items Notes 2015 2014 2015 2014Other comprehensive (loss) incomeComponents of other comprehensive income that will not be reclassified to profitor loss
(Loss) gain on remeasurements of defined benefit plans ( $ 289) ($ 8,914) $ 32,537 ($ 8,914) $ 65,072
Income tax related to components of other comprehensive income that will not bereclassified to profit or loss - - ( 5,010) - ( 10,019)
Components of other comprehensive income that will not be reclassified toprofit or loss ( 289) ( 8,914) 27,527 ( 8,914) 55,053
Components of other comprehensive income that will be reclassified to profit or loss
Financial statements translation differences of foreign operations ( 89,554) ( 1,556,935) ( 1,636,950) ( 2,763,643) ( 1,043,500)Unrealized (loss) gain on valuation of available-for-sale financial assets ( 20,138) ( 524,887) 40,322 ( 621,459) ( 497,748)Hedging instrument gain (loss) on effective hedge of cash flow hedges - - 5,451 - ( 23,650)
Share of other comprehensive income of associates and joint ventures accounted for
under equity method ( 2,577) ( 28,222) ( 4,976) ( 79,526) 31,377
Income tax relating to the components of other comprehensive income 6(30) 8,973 188,821 210,814 276,912 102,723
Components of other comprehensive income that will be reclassified to profitor loss ( 103,296) ( 1,921,223) ( 1,385,339) ( 3,187,716) ( 1,430,798)
Other comprehensive loss for the period ( $ 103,585) ($ 1,930,137) ($ 1,357,812) ($ 3,196,630) ($ 1,375,745)
Total comprehensive income for the period $ 170,931 $ 2,283,271 $ 4,400,412 $ 5,274,945 $ 9,308,284
Profit attributable to:
Owners of the parent $ 248,228 $ 3,794,616 $ 5,265,494 $ 7,660,320 $ 9,835,782
Non-controlling interest $ 26,288 $ 418,792 $ 492,730 $ 811,255 $ 848,247
(Continued)
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF DOLLARS, EXCEPT EARNINGS PER SHARE DATA)
(UNAUDITED)
The accompanying notes are an integral part of these consolidated financial statements.See review report of independent accountants dated July 28, 2015.
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US Dollars New Taiwan Dollars
For the six-monthperiod endedJune 30, 2015
For the three-month periods endedJune 30,
For the six-month periods endedJune 30,
(adjusted) (adjusted)Items Notes 2015 2014 2015 2014
Comprehensive income attributable to:
Owners of the parent $ 148,477 $ 1,932,281 $ 3,949,676 $ 4,581,993 $ 8,800,676
Non-controlling interest $ 22,454 $ 350,990 $ 450,736 $ 692,952 $ 507,608
Earnings per share (in dollars) 6(31)
Basic earnings per share $ 0.1017 $ 1.55 $ 2.16 $ 3.14 $ 4.04
Diluted earnings per share $ 0.1011 $ 1.54 $ 2.15 $ 3.12 $ 4.01
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF DOLLARS)
(UNAUDITED)
Equity attributable to owners of the parentRetained earnings Other equity interest
NotesShare capital -common stock Capital surplus Legal reserve
Specialreserve
Unappropriatedretainedearnings
Financialstatementstranslation
differences offoreign
operations
Unrealizedgain or loss onavailable-for-sale financial
assets
Hedginginstrument
gain (loss) oneffective
hedge of cashflow hedges Total
Non-controllinginterest Total equity
(Continued)~8~
2014 New Taiwan Dollars (adjusted)
Balance at January 1, 2014 $ 24,375,433 $ 25,790,922 $ 13,774,636 $ 4,074,505 $ 25,133,131 ($ 1,703,490 ) $ 2,104,380 $ 18,878 $ 93,568,395 $ 14,226,550 $ 107,794,945
Distribution of 2013 earnings 6(21)
Legal reserve - - 1,777,620 - ( 1,777,620 ) - - - - - -
Reversal of special reserve - - - ( 3,546,949 ) 3,546,949 - - - - - -
Cash dividends - - - - ( 14,137,751 ) - - - ( 14,137,751 ) - ( 14,137,751 )
Change in equity of associates and joint venturesaccounted for under equity method - 31,371 - - - - - - 31,371 - 31,371
Difference between consideration and carryingamount of subsidiaries acquired or disposed - 262 - - - - - - 262 - 262
Disposal of investments accounted for usingequity method - ( 340 ) - - - ( 9 ) - - ( 349 ) - ( 349 )
Changes in non-controlling interests - - - - - - - - - ( 693,782 ) ( 693,782 )
Other comprehensive income (loss) for theperiod - - - - 55,054 ( 571,950 ) ( 497,869 ) ( 20,341 ) ( 1,035,106 ) ( 340,639 ) ( 1,375,745 )
Profit for the period - - - - 9,835,782 - - - 9,835,782 848,247 10,684,029
Balance at June 30, 2014 $ 24,375,433 $ 25,822,215 $ 15,552,256 $ 527,556 $ 22,655,545 ($ 2,275,449 ) $ 1,606,511 ( $ 1,463 ) $ 88,262,604 $ 14,040,376 $ 102,302,980
2015 New Taiwan Dollars
Balance at January 1, 2015 (adjusted) $ 24,375,433 $ 25,822,764 $ 15,552,256 $ 527,556 $ 33,579,303 $ 2,415,377 $ 642,078 $ 6,630 $ 102,921,397 $ 12,746,960 $ 115,668,357
Distribution of 2014 earnings 6(21)
Legal reserve - - 2,069,890 - ( 2,069,890 ) - - - - - -
Reversal of special reserve - - - ( 527,556 ) 527,556 - - - - - -
Cash dividends - - - - ( 16,331,540 ) - - - ( 16,331,540 ) - ( 16,331,540 )
Change in equity of associates and joint venturesaccounted for under equity method - 563 - - - - - - 563 - 563
Changes in non-controlling interests - - - - - - - - - ( 3,486,244 ) ( 3,486,244 )
Other comprehensive loss for the period - - - - ( 8,914 ) ( 2,447,555 ) ( 621,416 ) ( 442 ) ( 3,078,327 ) ( 118,303 ) ( 3,196,630 )
Profit for the period - - - - 7,660,320 - - - 7,660,320 811,255 8,471,575
Balance at June 30, 2015 $ 24,375,433 $ 25,823,327 $ 17,622,146 $ - $ 23,356,835 ( $ 32,178 ) $ 20,662 $ 6,188 $ 91,172,413 $ 9,953,668 $ 101,126,081
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF DOLLARS)
(UNAUDITED)
Equity attributable to owners of the parentRetained earnings Other equity interest
NotesShare capital -common stock Capital surplus Legal reserve
Specialreserve
Unappropriatedretainedearnings
Financialstatementstranslation
differences offoreign
operations
Unrealizedgain or loss onavailable-for-sale financial
assets
Hedginginstrument
gain (loss) oneffective hedge
of cash flowhedges Total
Non-controllinginterest Total equity
The accompanying notes are an integral part of these consolidated financial statements.See review report of independent accountants dated July 28, 2015.
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2015 US Dollars
Balance at January 1, 2015 (adjusted) $ 789,871 $ 836,772 $ 503,962 $ 17,095 $ 1,088,117 $ 78,269 $ 20,806 $ 215 $ 3,335,107 $ 413,059 $ 3,748,166
Distribution of 2014 earnings 6(21)
Legal reserve - - 67,073 - ( 67,073 ) - - - - - -
Reversal of special reserve - - - ( 17,095 ) 17,095 - - - - - -
Cash dividends - - - - ( 529,214 ) - - - ( 529,214 ) - ( 529,214 )
Change in equity of associates and joint venturesaccounted for under equity method
- 18 - - --
- - 18 - 18
Changes in non-controlling interests - - - - - - - - - ( 112,970 ) ( 112,970 )
Other comprehensive loss for the period - - - - ( 289 ) ( 79,312 ) ( 20,136 ) ( 14 ) ( 99,751 ) ( 3,834 ) ( 103,585 )
Profit for the period - - - - 248,228 - - - 248,228 26,288 274,516
Balance at June 30, 2015 $ 789,871 $ 836,790 $ 571,035 $ - $ 756,864 ( $ 1,043 ) $ 670 $ 201 $ 2,954,388 $ 322,543 $ 3,276,931
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF DOLLARS)
(UNAUDITED)
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US Dollars New Taiwan Dollars
Notes 2015 2015 2104CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated profit before tax for the period $ 343,147 $ 10,589,523 $ 12,889,534Adjustments to reconcile net income to net cashgenerated from operating activities
Income and expenses having no effect on cash flows
Depreciation 6(10)(11) 108,940 3,361,894 3,266,828Amortization 6(12) 19,515 602,226 493,687Provision for bad debts 6(6) 7,176 221,436 187,492Net gain on financial assets or liabilities at fair
value through profit or loss
6(26)
( 1,610 ) ( 49,683 ) ( 20,596 )Interest expense 6(27) 6,078 187,561 65,463Interest income 6(25) ( 10,973 ) ( 338,637 ) ( 509,694 )Share of profit of associates accounted for under
the equity method
6(9)
( 19,533 ) ( 602,787 ) ( 482,834 )(Gain) loss on disposal of property, plant and
equipment
6(26)
( 423 ) ( 13,056 ) 9,503Loss (gain) on disposal of investments 6(26) 7,809 240,990 ( 119,430 )Impairment loss on financial assets 6(3) 467 14,422 15,549
Changes in assets/liabilities relating to operatingactivitiesNet changes in assets relating to operating
activitiesFinancial assets at fair value through profit or
loss ( 289 ) ( 8,932 ) ( 94,930 )Notes receivable ( 5,725 ) ( 176,663 ) ( 252,213 )Accounts receivable 118,997 3,672,246 1,297,067Accounts receivable - related parties ( 12,463 ) ( 384,602 ) ( 94,211 )Other receivables 4,312 133,065 ( 106,944 )Other receivables - related parties 721 22,250 129,898Inventories 39,740 1,226,387 ( 674,442 )Prepayments ( 22,615 ) ( 697,891 ) 178,748Other current assets ( 216 ) ( 6,680 ) ( 53,222 )Other non-current assets 8,385 258,753 20,684
Net changes in liabilities relating to operatingactivitiesNotes payable - - ( 808 )Accounts payable ( 131,609 ) ( 4,061,454 ) ( 2,078,236 )Accounts payable - related parties 2,899 89,470 82,327Other payables 44,758 1,381,239 1,028,679Other current liabilities ( 9,274 ) ( 286,183 ) 448,108Other non-current liabilities ( 2,475 ) ( 76,389 ) ( 20,032 )
Cash generated from operations 495,739 15,298,505 15,605,975Interest received 10,973 338,637 509,694Dividends received 24,272 749,034 657,399Interest paid ( 5,846 ) ( 180,404 ) ( 75,752 )Income taxes paid ( 57,895 ) ( 1,786,646 ) ( 1,419,010 )
Net cash provided by operating activities 467,243 14,419,126 15,278,306
(Continued)
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014
(EXPRESSED IN THOUSANDS OF DOLLARS)(UNAUDITED)
The accompanying notes are an integral part of these consolidated financial statements.See review report of independent accountants dated July 28, 2015.
~11~
US Dollars New Taiwan Dollars
Notes 2015 2015 2014
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value throughprofit or loss, designated upon initial recognition ( $ 3,063 ) ( $ 94,512 ) ($ 28,844 )
Disposal of financial assets at fair value through profitor loss, designated upon initial recognition - - 32,213
Acquisition of available-for-sale financial assets ( 10,262 ) ( 316,675 ) ( 135,103 )
Proceeds from disposal of available-for-sale financialassets 11,448 353,281 536,964
Acquisition of financial assets at cost ( 41 ) ( 1,271 ) -
Proceeds from capital reduction of financial assetscarried at cost 17 540 -
Proceeds from disposal of investments accounted forunder the equity method - - 13,261
Net cash flow from acquisition of subsidiaries (net ofcash acquired) 6(32) ( 455,691 ) ( 14,062,629 ) ( 349 )
Acquisition of property, plant and equipment 6(10) ( 123,816 ) ( 3,820,965 ) ( 2,419,934 )
Proceeds from disposal of property, plant andequipment 3,528 108,862 49,223
Acquisition of intangible assets 6(12) ( 5,843 ) ( 180,303 ) ( 128,565 )
(Increase) decrease in other financial assets ( 5,321 ) ( 164,206 ) 4,175
Decrease in other non-current assets ( 2,412 ) ( 74,427 ) ( 133,736 )
Net cash used in investing activities( 591,456 ) ( 18,252,305 ) ( 2,210,695 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings 68,891 2,125,976 1,217,080
Proceeds from long-term debt 675,768 20,854,202 6,471,000
Repayment of long-term debt ( 854,921 ) ( 26,382,860 ) ( 18,751,044 )
Change in non-controlling interests ( 93,067 ) ( 2,872,049 ) ( 16,979 )
Net cash used in financing activities ( 203,329 ) ( 6,274,731 ) ( 11,079,943 )
Effects due to changes in exchange rate ( 100,227 ) ( 3,093,031 ) ( 507,046 )
(Decrease) increase in cash and cash equivalents ( 427,769 ) ( 13,200,941 ) 1,480,622
Cash and cash equivalents at beginning of period 2,380,422 73,459,818 59,023,870
Cash and cash equivalents at end of period $ 1,952,653 $ 60,258,877 $ 60,504,492
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DELTA ELECTRONICS, INC. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2015 AND 2014(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT AS OTHERWISE INDICATED)
1. HISTORY AND ORGANIZATION
Delta Electronics, Inc. (the Company) was incorporated as a company limited by shares under the
provisions of the Company Law of the Republic of China (R.O.C.). The Company and its subsidiaries
(collectively referred herein as the Group) are the global leader in power and thermal management
solutions and are primarily engaged in the research and development, design, manufacturing and sale
of electronic control systems, industrial automation products, digital display products, communication
products, consumer electronics products, energy-saving lighting application and energy technology
services, etc. The Group’s mission statement, to provide innovative, clean and energy-efficient
solutions for a better tomorrow, focuses on the role in addressing key environmental issues such as
global climate change. With the concern for the environment, the Group continues to develop
innovative energy-efficient products and solutions. In recent years, the Group has transformed from a
product provider towards a solution provider and the Group’s business is segregated into power
electronics business, energy management business, and smart green life business.
2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND PROCEDURES FOR AUTHORIZATION
These consolidated financial statements were authorised for issuance by the Board of Directors on July
28, 2015.
3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting
Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)
According to Financial-Supervisory-Securities-Auditing No. 1030010325 issued by FSC on April 3,
2014, commencing 2015, companies with shares listed on the TWSE or traded on the Taipei
Exchange or Emerging Stock Market shall adopt the 2013 version of IFRS (not including IFRS 9,
‘Financial instruments’) as endorsed by the FSC and Regulations Governing the Preparation of
Financial Reports by Securities Issuers effective January 1, 2015 (collectively referred herein as
“the 2013 version of IFRS”) in preparing the consolidated financial statements. The impact of
adopting the 2013 version of IFRS is listed below:
A. IAS 19 (revised), ‘Employee benefits’
The revised standard makes amendments that net interest amount, calculated by applying the
discount rate to the net defined benefit asset or liability, replaces the finance charge and expected
return on plan assets. The revised standard eliminates the accounting policy choice that the
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actuarial gains and losses could be recognised based on corridor approach or recognised in profit
or loss. The revised standard requires that the actuarial gains and losses can only be recognised
immediately in other comprehensive income when incurred. Past service cost will be recognised
immediately in the period incurred and will no longer be amortised using straight-line basis over
the average period until the benefits become vested. An entity is required to recognise
termination benefits at the earlier of when the entity can no longer withdraw an offer of those
benefits and when it recognises any related restructuring costs, rather than when the entity is
demonstrably committed to a termination. Additional disclosures are required for defined benefit
plans. Based on the Group’s assessment, the impact of the standard is in the following table.
The Group recognised previously unrecognised past service cost and as a consequence of
elimination of the corridor approach recognised prior unrecognised actuarial losses by increasing
accrued pension liabilities by $25,830, increasing deferred tax assets by $56,653, increasing
deferred tax liabilities by $32,367 and decreasing retained earnings by $79,197, decreasing
non-controlling interests by $11,488 and decreasing long-term equity investments by $89,141 at
January 1, 2014, and by decreasing accrued pension liabilities by $111,338, increasing deferred
tax assets by $63,987, increasing deferred tax liabilities by $62,446, increasing retained earnings
by $36,485, decreasing non-controlling interests by $7,205 and decreasing long-term equity
investments by $83,599 at December 31, 2014; and by decreasing operating expenses by $420,
increasing gain on investments by $1,385, increasing income tax expense by $336, increasing
other comprehensive income by $27,527, decreasing accrued pension liabilities by $32,956,
increasing deferred tax liabilities by $5,346 and increasing long-term equity investments by
$1,385 for the three-month period ended June 30, 2014; and by decreasing operating expenses
by $840, increasing gain on investments by $2,771, increasing income tax expense by $672,
increasing other comprehensive income by $55,053, decreasing accrued pension liabilities by
$65,912, increasing deferred tax liabilities by $10,691 and increasing long-term equity
investments by $2,771 for the six-month period ended June 30, 2014.
B. IAS 1, ‘Presentation of financial statements’
The amendment requires entities to separate items presented in OCI classified by nature into two
groups on the basis of whether they are potentially reclassifiable to profit or loss subsequently
when specific conditions are met. If the items are presented before tax then the tax related to
each of the two groups of OCI items (those that might be reclassified and those that will not be
reclassified) must be shown separately. Accordingly, the Group will adjust its presentation of the
statement of comprehensive income.
C. IFRS 12, ‘Disclosure of interests in other entities’
The standard integrates the disclosure requirements for subsidiaries, joint arrangements,
associates and unconsolidated structured entities. Also, the Group will disclose additional
information about its interests in consolidated entities and unconsolidated entities accordingly.
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D. IFRS 13, ‘Fair value measurement’
The standard defines fair value as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date.
The standard sets out a framework for measuring fair value from market participants’
perspective, and requires disclosures about fair value measurements. For non-financial assets
only, fair value is determined based on the highest and best use of the asset. Based on the
Group’s assessment, the adoption of the standard has no significant impact on its consolidated
financial statements, and the Group will disclose additional information about fair value
measurements accordingly.
(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by
the Group
None.
(3) Effect of IFRSs issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the 2013
version of IFRSs as endorsed by the FSC:
New Standards, Interpretations and Amendments
International
Accounting Standards
Board
IFRS 9, ‘Financial instruments' January 1, 2018
Sale or contribution of assets between an investor and its associate or joint
venture (amendments to IFRS 10 and IAS 28)
January 1, 2016
Investment Entities: Applying the Consolidation Exception (IFRS 10, IFRS
12 and IAS 28)
January 1, 2016
Accounting for acquisition of interests in joint operations
(amendments to IFRS 11)
IFRS 14, 'Regulatory deferral accounts' January 1, 2016
IFRS 15, ‘Revenue from contracts with customers' January 1, 2017
Disclosure Initiative (Amendments to IAS 1) January 1, 2016
Clarification of acceptable methods of depreciation and amortisation
(amendments to IAS 16 and IAS 38)
January 1, 2016
Agriculture: bearer plants (amendments to IAS 16 and IAS 41) January 1, 2016
Defined benefit plans: employee contributions (amendments to IAS 19R) July 1, 2014
Equity method in separate financial statements (amendments to IAS 27) January 1, 2016
Recoverable amount disclosures for non-financial assets
(amendments to IAS 36)
Novation of derivatives and continuation of hedge accounting
(amendments to IAS 39)
January 1, 2016
January 1, 2014
January 1, 2014
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The Group is assessing the potential impact of the new standards, interpretations and amendments
above and has not yet been able to reliably estimate their impact on the consolidated financial
statements.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Except for the compliance statement, basis of preparation, basis of consolidation and increased sections
as below, the significant accounting policies are identical to those disclosed in the consolidated
financial statements for the year ended December 31, 2014. These policies have been consistently
applied to all the periods presented, unless otherwise stated.
(1) Compliance statement
A. The consolidated financial statements of the Group have been prepared in accordance with the
“Rules Governing the Preparation of Financial Statements by Securities Issuers” and IAS 34,
“Interim Financial Reporting” as endorsed by the FSC.
B. These consolidated financial statements should be read along with the consolidated financial
statements for the year ended December 31, 2014.
(2) Basis of preparation
A. Except for the following items, the consolidated financial statements have been prepared under
the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value
through profit or loss.
(b) Available-for-sale financial assets measured at fair value.
(c) Liabilities on cash-settled share-based payment arrangements measured at fair value.
(d) Defined benefit liabilities recognised based on the net amount of pension fund assets less
present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting
Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as
endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain
critical accounting estimates. It also requires management to exercise its judgment in the
process of applying the Group’s accounting policies. The areas involving a higher degree of
judgment or complexity, or areas where assumptions and estimates are significant to the
New Standards, Interpretations and Amendments
International
Accounting Standards
Board
IFRIC 21, ‘Levies’ January 1, 2014
Improvements to IFRSs 2010-2012 July 1, 2014
Improvements to IFRSs 2011-2013 July 1, 2014
Improvements to IFRSs 2012-2014 January 1, 2016
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consolidated financial statements are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries
are all entities (including structured entities) controlled by the Group. The Group controls an
entity when the Group is exposed, or has rights, to variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity.
Consolidation of subsidiaries begins from the date the Group obtains control of the
subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealised gains or losses on transactions between
companies within the Group are eliminated. Accounting policies of subsidiaries have been
adjusted where necessary to ensure consistency with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the
owners of the parent and to the non-controlling interests. Total comprehensive income is
attributed to the owners of the parent and to the non-controlling interests even if this results
in the non-controlling interests having a deficit balance.
(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing
control of the subsidiary (transactions with non-controlling interests) are accounted for as
equity transactions, i.e. transactions with owners in their capacity as owners. Any difference
between the amount by which the non-controlling interests are adjusted and the fair value of
the consideration paid or received is recognised directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained
in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial
recognition of a financial asset or the cost on initial recognition of the associate or joint
venture. Any difference between fair value and carrying amount is recognised in profit or
loss. All amounts previously recognised in other comprehensive income in relation to the
subsidiary are reclassified to profit or loss, on the same basis as would be required if the
related assets or liabilities were disposed of. That is, when the Group loses control of a
subsidiary, all gains or losses previously recognised in other comprehensive income in
relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or
losses would be reclassified to profit or loss when the related assets or liabilities are disposed
of.
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B. Subsidiaries included in the consolidated financial statements:
Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Delta
Electronics, Inc.
Delta International
Holding Ltd. (DIH)
Equity investments 94.00 94.00 94.00
Delta
Electronics, Inc.
Delta Networks
Holding Ltd. (DNH)
Equity investments 100.00 100.00 100.00
Delta
Electronics, Inc.
Deltronics
(Netherlands) B.V.
(DEN)
Trading of equipment,
components and
materials of telecom
and computer
systems
100.00 100.00 100.00 Note J
Delta
Electronics, Inc.
PreOptix (Hong
Kong) Co., Ltd.
(PHK)
Equity investments 39.62 39.62 39.62 Note I
Note J
Delta
Electronics, Inc.
NeoEnergy
Microelectronics,
Inc. (NEM)
Designing and
experimenting on
integrated circuit and
information software
services
83.11 83.11 83.11 Note I
Delta
Electronics, Inc.
Cyntec Co., Ltd.
(Cyntec)
Research, development,
manufacturing and sales
of film optic-electronics
devices
100.00 100.00 100.00
Delta
Electronics, Inc.
DelBio Inc.
(DelBio)
Manufacturing,
wholesale and retail of
medical equipment
100.00 100.00 100.00 Note I
Delta
Electronics, Inc.
Delta Electronics
Capital Company
(Delta Capital)
Equity investments 100.00 100.00 100.00 Note I
Note J
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Delta
Electronics, Inc.
Delta Electronics Int
’l (Singapore) Pte.
Ltd. (DEIL-SG)
Sales of electronic
products
100.00 100.00 100.00
Delta
Electronics, Inc.
Delta Smart Green
Life Co., Ltd.
(DSGL)
Research and
development, energy
technology, meeting,
exhibition, and leasing
services, etc.
- - 100.00 Note G
Note J
Delta
Electronics, Inc.
Allied Material
Technology Corp.
(AMT)
Manufacturing and sales
of color filter and lease
services, etc.
99.97 99.97 99.97 Note J
Delta
Electronics, Inc.
SYN-TEK
Automation Co.,
Ltd. (STA)
Research, designing,
development,
manufacturing and sales
of industrial automation
equipment, etc.
70.00 70.00 70.00 Note I
Note J
Delta
Electronics, Inc.
Delta Green Life
Co., Ltd. (DGL)
(Formerly known as
Vivitek
Corporation)
Providing installment
construction of lighting
equipment
100.00 100.00 100.00 Note B
Note H
Note I
Delta
Electronics, Inc.
Vitor Technology
Inc.
Providing and
installation of
surveillance system
equipment
100.00 - - Note A
Note I
Delta
International
Holding Ltd.
(DIH)
Delta Electronics
(H.K.) Ltd. (DHK)
Equity investments,
operations management
and engineering services
100.00 100.00 100.00
Delta
International
Holding Ltd.
(DIH)
Delta Electronics
International Ltd.
(DEIL-Labuan)
Sales of electronic
products
100.00 100.00 100.00
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Delta
International
Holding Ltd.
(DIH)
Delta Power Sharp
Ltd. (DPS)
Operations and
engineering services
100.00 100.00 100.00 Note I
Note J
Delta
International
Holding Ltd.
(DIH)
DEI Logistics
(USA) Corp. (ALI)
Warehousing and
logistics services
100.00 100.00 100.00 Note J
Delta
International
Holding Ltd.
(DIH)
Delta Electronics
(Japan), Inc. (DEJ)
Sales of power products,
display solution
products, electronic
components, industrial
automation products and
their materials
100.00 100.00 100.00 Note I
Note J
Delta
International
Holding Ltd.
(DIH)
DAC Holding
(Cayman) Ltd.
(DAC)
Equity investments 100.00 100.00 100.00 Note I
Note J
Delta
International
Holding Ltd.
(DIH)
Ace Pillar Holding
Co., Ltd. (Ace)
Equity investments 100.00 100.00 100.00 Note D
Delta
International
Holding Ltd.
(DIH)
PreOptix (Hong
Kong) Co., Ltd.
(PHK)
Equity investments 60.38 60.38 60.38 Note I
Note J
Delta
International
Holding Ltd.
(DIH)
Drake Overseas
Financial
Investment Ltd.
(Drake)
Equity investments - 100.00 100.00 Note L
Delta
International
Holding Ltd.
(DIH)
Drake Investment
(HK) Ltd.
(Drake-HK)
Equity investments 100.00 - - Note L
Delta
International
Holding Ltd.
(DIH)
Delta Greentech
(China) Co., Ltd.
(DGC)
Manufacturing and sales
of uninterruptible power
systems
10.38 10.38 10.38 Note D
Delta
International
Holding Ltd.
(DIH)
Vivitek Corporation
(Vivitek)
Sales of projector
products and their
materials
100.00 100.00 100.00 Note J
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Delta
International
Holding Ltd.
(DIH)
Delta Greentech
SGP Pte. Ltd.
(DGSG)
Equity investments 100.00 100.00 54.83 Note D
Note E
Delta
International
Holding
Ltd.(DIH)
Delta Electronics
Europe Ltd. (DEU)
Repair centre and
providing of support
services
100.00 100.00 - Note B
Note I
Delta
International
Holding
Ltd.(DIH)
Boom Treasure Ltd.
(Boom)
Equity investments 100.00 100.00 - Note B
Note D
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
(Dongguan) Co.,
Ltd. (DDG)
Manufacturing and sales
of transformer and power
supplies
100.00 100.00 100.00
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
Power (Dongguan)
Co., Ltd. (DEP)
Manufacturing and sales
of transformer and power
supplies
100.00 100.00 100.00
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
(Shanghai) Co., Ltd.
(DPEC)
Product design and
management consulting
service, etc.
100.00 100.00 100.00
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
(Jiangsu) Ltd.
(DWJ)
Manufacturing and sales
of power supplies and
transformers
55.00 55.00 55.00
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
Components
(Wujiang) Ltd.
(DWC)
Manufacturing and sales
of transformers
55.00 55.00 55.00
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electro-Optics
(Wujiang) Ltd.
(DWO)
Manufacturing and sales
of peripherals and
electronic control
equipment
55.00 55.00 55.00
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Video Display
System (Wujiang)
Ltd. (DWV)
Manufacturing and sales
of various projectors
55.00 55.00 55.00
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
(Wuhu) Co., Ltd.
(DWH)
Manufacturing and sales
of power supplies and
transformers
100.00 100.00 100.00
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
(Chenzhou) Co.,
Ltd. (DCZ)
Manufacturing and sales
of power supplies and
transformers
100.00 100.00 100.00
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
International
Mexico S.A. DE
C.V. (DEIL-MX)
Sales of power
management of industrial
automation product and
telecommunications
equipment
100.00 100.00 100.00 Note I
Note J
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
(Wujiang) Trading
Co., Ltd. (DWT)
Installation, consulting
and trading of electronic
products
100.00 100.00 100.00 Note I
Note J
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Green
(Tianjin) Industries
Co., Ltd. (DGT)
Manufacturing and sales
of transformers and
bluetooth module
100.00 100.00 100.00 Note I
Note J
Delta
Electronics
(H.K.) Ltd.
(DHK)
Delta Electronics
(Pingtan) Co., Ltd.
(Delta Pingtan)
Wholesale and retail of
electronic products and
energy-saving equipment
100.00 100.00 - Note B
Note I
PreOptix (Hong
Kong) Co., Ltd.
(PHK)
PreOptix (Jiang Su)
Co., Ltd. (PJS)
Manufacturing and sales
of lenses and optical
engines for projectors
100.00 100.00 100.00 Note I
Delta
Electronics
(Japan), Inc.
(DEJ)
Addtron
Technology (Japan),
Inc. (AT Japan)
Trading of networking
system and peripherals
100.00 100.00 100.00 Note I
Note J
Delta
Electronics
(Japan), Inc.
(DEJ)
Delta Electronics
(Korea), Inc. (Delta
Korea)
Sales of power products,
display solution products
electronic components,
industrial automation
products and their
materials
100.00 100.00 100.00 Note I
Note J
DAC Holding
(Cayman) Ltd.
(DAC)
Delta Electronics
Mexico S.A. DE
C.V. (DEM)
Manufacturing and sales
of electronic products
100.00 100.00 100.00 Note I
Note J
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
DAC Holding
(Cayman) Ltd.
(DAC)
Delta Video
Technology Ltd.
(DVT)
Sales of electronic
products
100.00 100.00 100.00 Note I
Note J
Drake Overseas
Financial
Investment Ltd.
(Drake)
Drake Investment
(HK) Ltd. (Drake-
HK)
Equity investments - 100.00 100.00 Note D
Note L
Ace Pillar
Holding Co.,
Ltd. (Ace)
Delta Greentech
(China) Co., Ltd.
(DGC)
Manufacturing and sales
of uninterruptible power
systems
3.81 3.81 3.81 Note D
Drake
Investment
(HK) Ltd.
(Drake-HK)
Delta Greentech
(China) Co., Ltd.
(DGC)
Manufacturing and sales
of uninterruptible power
systems
48.51 48.51 48.51 Note D
Delta Greentech
SGP Pte. Ltd.
(DGSG)
Delta Greentech
(China) Co., Ltd.
(DGC)
Manufacturing and sales
of power supplies and
transformers
8.21 8.21 8.21 Note D
Boom Treasure
Ltd. (Boom)
Delta Greentech
(China) Co., Ltd.
(DGC)
Manufacturing and sales
of power supplies and
transformers
25.00 25.00 - Note D
Note F
Delta
Electronics
(Wuhu) Co.,
Ltd. (DWH)
Wuhu Delta
Technology Co.,
Ltd. (WDT)
Manufacturing and sales
of power supplies and
transformers
100.00 100.00 100.00
Delta
Electronics
(Wuhu) Co.,
Ltd. (DWH)
Delta Energy
Technology (Wuhu)
Co., Ltd. (DET-
WH)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
30.00 30.00 30.00 Note I
Note J
Delta
Electronics
(Chenzhou) Co.,
Ltd. (DCZ)
Chenzhou Delta
Technology Co.,
Ltd. (CDT)
Manufacturing and sales
of power supplies and
transformers
100.00 100.00 100.00
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Delta
Electronics
(Chenzhou) Co.,
Ltd. (DCZ)
Delta Energy
Technology
(Chenzhou) Co.,
Ltd. (DET-CZ)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
30.00 30.00 30.00 Note I
Note J
Delta
Electronics
(Dongguan)
Co., Ltd. (DDG)
Delta Energy
Technology
(Dongguan) Co.,
Ltd., (DET-DG)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
30.00 30.00 30.00 Note I
Note J
Delta Electro-
Optics
(Wujiang) Ltd.
(DWO)
Delta Energy
Technology
(Wujiang) Co., Ltd.
(DET-WJ)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
30.00 30.00 30.00 Note I
Note J
Delta
Electronics
(Shanghai) Co.,
Ltd. (DPEC)
Delta Energy
Technology (Wuhu)
Co., Ltd. (DET-
WH)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
70.00 70.00 70.00 Note I
Note J
Delta
Electronics
(Shanghai) Co.,
Ltd. (DPEC)
Delta Energy
Technology
(Chenzhou) Co.,
Ltd. (DET-CZ)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
70.00 70.00 70.00 Note I
Note J
Delta
Electronics
(Shanghai) Co.,
Ltd. (DPEC)
Delta Energy
Technology
(Dongguan) Co.,
Ltd. (DET-DG)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
70.00 70.00 70.00 Note I
Note J
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Delta
Electronics
(Shanghai) Co.,
Ltd. (DPEC)
Delta Energy
Technology
(Wujiang) Co., Ltd.
(DET-WJ)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
70.00 70.00 70.00 Note I
Note J
Delta
Electronics
(Shanghai) Co.,
Ltd. (DPEC)
Delta Energy
Technology
(Shanghai) Co., Ltd.
(DET-SH)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
10.00 10.00 10.00
Delta Greentech
(China) Co.,
Ltd. (DGC)
Delta Energy
Technology
(Shanghai) Co., Ltd.
(DET-SH)
Research and
development of energy-
saving technology,
energy-saving
equipment, energy
management system and
technology consulting
service, etc.
90.00 90.00 90.00
Delta Networks
Holding Ltd.
(DNH)
Delta Networks,
Inc. (DNI Cayman)
Equity investments 100.00 100.00 100.00
Delta Networks,
Inc. (DNI
Cayman)
Delta Networks,
Inc. (Taiwan)
(DNIT)
Manufacturing and sales
of networking system
and peripherals
99.98 99.98 99.98
Delta Networks,
Inc. (DNI
Cayman)
DNI Logistics
(USA) Corp. (ALN)
Trading of networking
system and peripherals
100.00 100.00 100.00 Note I
Note J
Delta Networks,
Inc. (DNI
Cayman)
Delta Networks
International Ltd.
(DNIL-Labuan)
Trading of networking
system and peripherals
100.00 100.00 100.00
Delta Networks,
Inc. (DNI
Cayman)
Delta Networks
(H.K.) Ltd.
(DNHK)
Equity investments 100.00 100.00 100.00
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Delta Networks
(H.K.) Ltd.
(DNHK)
Delta Networks
(Dongguan) Ltd.
(DII)
Manufacturing and sales
of other radio
transmission apparatus,
incorporating reception
apparatus and other
radio-broadcast
receivers, combined with
sound recording or
reproducing apparatus
100.00 100.00 100.00
Delta Networks
(H.K.) Ltd.
(DNHK)
Delta Networks
(Shanghai) Ltd.
(DNS)
Design of computer
software
100.00 100.00 100.00
Delta Networks
(H.K.) Ltd.
(DNHK)
Delta Networks
(Xiamen) Ltd.
(DNX)
Operation of radio
transmission apparatus,
and automatic data
processing, reception,
conversion and
transmission or
regeneration of voice,
images or other data of
the machine, including
switches and routers,
with a special program to
control a computer or
word processor with
memory business
100.00 100.00 100.00
Delta Networks,
Inc. (Taiwan)
(DNIT)
Ayecom
Technology Co.,
Ltd. (Ayecom)
Manufacturing and sales
of wire and wireless
telecommunications
equipment, electronic
parts and controlled
telecommunications
radio frequency devices
- 100.00 100.00 Note J
Note K
Cyntec Co., Ltd.
(Cyntec)
Fairview Assets Ltd.
(Fairview)
Equity investments 100.00 100.00 100.00
Fairview Assets
Ltd. (Fairview)
Grandview Holding
Ltd. (Grandview)
Equity investments 100.00 100.00 100.00
Grandview
Holding Ltd.
(Grandview)
Cyntec Holding
(H.K.) Ltd. (CHK)
Equity investments 100.00 100.00 100.00
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Grandview
Holding Ltd.
(Grandview)
Cyntec International
Ltd. (CIL-Labuan)
Trading 100.00 100.00 100.00
Cyntec Holding
(H.K.) Ltd.
(CHK)
Cyntec (Suzhou)
Co., Ltd. (CSC)
Research, development,
manufacturing and sales
of new-type electronic
components and
wholesale, import and
export of similar
products
100.00 100.00 100.00
Cyntec Holding
(H.K.) Ltd.
(CHK)
Cyntec Electronics
(Suzhou) Co., Ltd.
(CES)
Research, development,
manufacturing and sales
of new-type electronic
components (chip
components, sensing
elements, hybrid
integrated circuits) and
wholesale of similar
products
100.00 100.00 100.00
DelBio Inc.
(DelBio)
DelBio (Wujiang)
Co., Ltd.
Manufacturing,
wholesale and retail of
medical equipment
100.00 100.00 100.00 Note I
Deltronics
(Netherlands)
B.V.(DEN)
Eltek Power
Systems AS
Equity investments 100.00 - - Note A
Eltek Power
Systems AS
Eltek Ventures AS Equity investments 100.00 - - Note A
Note I
Eltek Power
Systems AS
Networks Holding
AS
Equity investments 100.00 - - Note A
Note I
Eltek Power
Systems AS
Eltek Management
Invest AS
Equity investments 100.00 - - Note A
Note I
Eltek Power
Systems AS
Eltek Valere
Holding AS
Equity investments 96.37 - - Note A
Note I
Eltek
Management
Invest AS
Eltek Valere
Holding AS
Equity investments 3.63 - - Note A
Note I
Eltek Valere
Holding AS
Eltek AS Research and sales of
power supplies and
others
100.00 - - Note A
Eltek Valere
Holding AS
Eltek Holding Inc. Equity investments 9.90 - - Note A
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Eltek AS Eltek Pakistan Pvt
Ltd
Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek AS Eltek Deutschland
GmbH
Sales of power supplies
and others and system
installation
100.00 - - Note A
Note I
Eltek AS Eltek Australia Pty
Ltd
Sales of power supplies
and others and system
installation
100.00 - - Note A
Note I
Eltek AS Eltek Egypt for
Power Supply
Sales of power supplies
and others
95.00 - - Note A
Note I
Eltek AS Eltek SGS Pvt Ltd Sales of power supplies
and others and system
installation
100.00 - - Note A
Note I
Eltek AS Eltek SGS
Mechanics Pvt Ltd.
Sales of power supplies
and others
33.60 - - Note A
Note I
Eltek AS Eltek Power Pte Ltd Sales of power supplies
and others and system
installation
100.00 - - Note A
Note I
Eltek AS Eltek Polska Sp.zoo Sales of power supplies
and others and system
installation
51.00 - - Note A
Note I
Eltek AS Eltek s.r.o. Manufacturing and sales
of power supplies
100.00 - - Note A
Note I
Eltek AS Eltek Power France
SAS
Sales of power supplies
and others and system
installation
100.00 - - Note A
Note I
Eltek AS Eltek Ltd. Equity investments and
trading
100.00 - - Note A
Note I
Eltek AS Eltek MEA FZCO Closure 80.00 - - Note A
Note I
Eltek AS Eltek MEA DMCC Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek AS Eltek Kenya
Limited
Sales of power supplies 99.00 - - Note A
Note I
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Eltek AS Eltek West Africa
Ltd
Sales of power supplies 99.00 - - Note A
Note I
Eltek AS Eltek S.r.l Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek AS Eltek Holding AB Equity investments 100.00 - - Note A
Note I
Eltek AS Eltek Power Ltd Sales of power supplies 100.00 - - Note A
Note I
Eltek AS Eltek Power Oy Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek AS OOO Eltek Sales of power supplies
and others and system
installation
100.00 - - Note A
Eltek AS Eltek Enerji
Sistemleri Ltd
Sirketi
Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek AS Eltek Holding Inc. Equity investments 90.10 - - Note A
Note I
Eltek SGS Pvt
Ltd
Eltek SGS
Mechanics Pvt Ltd.
Discontinued 17.40 - - Note A
Note I
Eltek MEA
DMCC
Eltek Kenya
Limited
Sales of power supplies
and others
1.00 - - Note A
Note I
Eltek MEA
DMCC
Eltek West Africa
Ltd
Sales of power supplies
and others
1.00 - - Note A
Note I
Eltek
Deutschland
GmbH
Eltek Industrial
Systems GmbH
Discontinued 100.00 - - Note A
Note I
Eltek
Deutschland
GmbH
Eltek Montage
GmbH
Installation and
maintenance of power
supplies
100.00 - - Note A
Note I
Eltek
Deutschland
GmbH
E.V.I Electronics
Sp.zoo
Trading and construction
of power supply model
100.00 - - Note A
Note I
Ownership (%)
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Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Eltek Power Pte
Ltd
Eltek Power Inc Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek Power Pte
Ltd
Eltek Thailand Co
Ltd
Sales of power supplies
and others
100.00 - - Note A
Note I
Note N
Eltek Power Pte
Ltd
Eltek Power
Cambodia Ltd
Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek Power Pte
Ltd
Eltek Power Sdn
Bhd
Sales of power supplies
and others
100.00 - - Note A
Note I
Note O
Eltek Power Pte
Ltd
E.V. Industrial te
Ltd
Sales of power supplies
and others
100.00 - - Note I
Note M
Eltek Power Pte
Ltd
Eltek Power Korea
Co Ltd
Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek Ltd Eltek CVI Ltd Equity investments 100.00 - - Note A
Note I
Eltek CVI Ltd Eltek Energy
Technology
Manufacturing and sales
of power supplies
100.00 - - Note A
Note I
Eltek Holding
AB
Eltek Power
Sweden AB
Sales of power supplies
and equity investments
100.00 - - Note A
Note I
Eltek Power
Sweden AB
Valere Power
Europe AB
Closure 100.00 - - Note A
Note I
Eltek Holding
Inc.
Eltek Inc. Manufacturing and sales
of power supplies
100.00 - - Note A
Eltek Inc. Eltek Argentina
S.R.L
Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek Inc. Eltek Sistemas de
Energia Ind. Com.
SA
Manufacturing and sales
of power supplies
100.00 - - Note A
Note I
Eltek Inc. Eltek Peru SRL Sales of power supplies
and others
100.00 - - Note A
Note I
Ownership (%)
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Note A: Companies were established or acquired through merger during 2015.
Note B: Companies were established or acquired through merger during 2014.
Note C: On April 1, 2014, the Company’s wholly-owned subsidiary – Delta Robot Automatic
Co., Ltd. was merged into the Company and the surviving company was the Company.
Note D: DIH acquired stock ownership in Ace, Drake, DGSG (please refer to Note E) and
Boom (please refer to Note F) which indirectly acquired 3.811%, 48.51%, 8.21% and
25% stock ownership, respectively in DGC. Including the original 10.38% stock
ownership held by DIH, the Company’s consolidated stock ownership in DGC was
95.91% and accordingly, DGC was included in the consolidated financial statements.
Note E: DIH indirectly held 8.21% share ownership of DGC through DGSG, and acquired
54.83% share ownership of DGSG on April 1, 2013. DGSG was included in the
consolidated financial statements effective on that date, and DIH acquired 45.17%
share ownership of DGSG on September 1, 2014.
Note F: DIH acquired 100% share ownership of Boom on September 1, 2014. Boom was
included in the consolidated financial statements effective on that date, and DIH
indirectly held 25% share ownership of DGC.
Note G: Formerly known as Delta Smart Green Life Co., Ltd. and was renamed on August 25,
2014. Liquidation was completed at December 4, 2014.
Note H: Formerly known as Vivitek Corporation and was renamed on December 29, 2014.
Note I: As the subsidiaries do not meet the definition of significant subsidiaries, their financial
statements as of June 30, 2015 were not reviewed by independent accountants.
Name of Name of Main Business June 30, December 31, June 30,Investor Subsidiary Activities 2015 2014 2014 Description
Eltek Inc. Eltek Colombia
S.A.S
Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek Inc. Eltek Energy
International I
Equity investments 100.00 - - Note A
Note I
Eltek Inc. Eltek Energy
International II
Equity investments 100.00 - - Note A
Note I
Eltek Energy
International II
Eltekenergy
Services SA de CV
Sales of power supplies
and others
100.00 - - Note A
Note I
Eltek Energy
International II
Eltekenergy
International de
Mexico S de RL de
CV
Sales of power supplies
and others
100.00 - - Note A
Note I
Ownership (%)
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Note J: As the subsidiaries do not meet the definition of significant subsidiaries, their financial
statements as of June 30, 2014 were not reviewed by independent accountants.
Note K: Ayecom was included in DNIT starting from the effective date of consolidation on
January 1, 2015.
Note L: After Drake was liquidated on February 3, 2015, DIH holds 100% share capital in
Drake-HK.
Note M: The subsidiary was merged into Eltek Power Pte Ltd. on June 30, 2015.
Note N: 55% of shares are held through others due to local regulations.
Note O: 71% of shares are held through others due to local regulations.
The financial statements of certain consolidated subsidiaries for the six-month periods ended
June 30, 2015 and 2014 were not reviewed by independent accountants. The total assets of these
unreviewed subsidiaries as of June 30, 2015 and 2014 were $14,494,016 and $17,038,969,
constituting 6.46% and 8.68% of total consolidated assets, respectively, and the total liabilities
were $3,859,145 and $2,734,698, constituting 3.13% and 2.91% of the consolidated total
liabilities, respectively. The total comprehensive income was $197,301, $60,303, $120,094 and
$509,513, constituting 8.64%, 1.38%, 2.28%, and 5.51% of the consolidated total
comprehensive income for the three-month periods ended June 30, 2015 and 2014, and
six-month periods ended June 30, 2015 and 2014, respectively.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group:
As of June 30, 2015, December 31, 2014 and June 30, 2014, the non-controlling interest
amounted to $9,953,668, $12,746,960 and $14,040,376, respectively. The information on
non-controlling interest and respective subsidiaries is as follows:
Principal place Ownership Ownershipof business Amount (%) Amount (%)
Delta International
Holding Ltd. (DIH)
Cayman Islands $ 9,868,149 6% $12,724,164 6%
Non-controlling interestJune 30, 2015 December 31, 2014
Name of subsidiary
Principal place Ownershipof business Amount (%)
Delta International Holding Ltd. (DIH) Cayman Islands 14,013,691$ 6%
Non-controlling interestJune 30, 2014
Name of subsidiary
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Summarised financial information of the subsidiaries:
Balance sheets
Statements of comprehensive income
June 30, 2015 December 31, 2014 June 30, 2014
Current assets 92,049,213$ 86,974,020$ 86,139,731$Non-current assets 43,133,157 41,269,607 37,454,356Current liabilities 43,784,633)( 38,117,964)( 39,143,531)(
Non-current liabilities 1,661,039)( 2,050,154)( 2,101,472)(
Total net assets 89,736,698$ 88,075,509$ 82,349,084$
DIH
Three-month period Three-month periodended June 30, 2015 ended June 30, 2014
Revenue 36,503,818$ 34,422,320$
Profit before income tax 2,106,566 2,668,595Income tax expense 491,246)( 408,282)(Profit for the period from continuing
operations1,615,321 2,260,314
Net non-controlling interest 343,835)( 374,862)(Profit for the period 1,271,486 1,885,451
Other comprehensive income, net of tax 2,212,359 884,271
Total comprehensive income for the period 3,483,845$ 2,769,722$
Comprehensive income attributable to
non-controlling interest 344,219$ 563,807$
Dividends paid to non-controlling interest 8,218)($ -$
DIH
Six-month period Six-month periodended June 30, 2015 ended June 30, 2014
Revenue 70,481,420$ 65,519,209$
Profit before income tax 3,743,478 4,735,996Income tax expense 672,737)( 703,286)(Profit for the period from continuing
operations3,070,742 4,032,711
Net non-controlling interest 660,369)( 639,258)(Profit for the period 2,410,373 3,393,452
Other comprehensive income, net of tax 3,226,196 928,406
Total comprehensive income for the period 5,636,569$ 4,321,858$
Comprehensive income attributable to
non-controlling interest 648,311$ 579,198$
Dividends paid to non-controlling interest 2,872,049$ 16,979$
DIH
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Statements of cash flows
(4) Employee benefits
A. Pensions
(a) Defined contribution plans
Under the defined contribution plans, the contributions are recognised as pension expenses
when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the
extent of a cash refund or a reduction in the future payments.
(b) Defined benefit plans
i. Net obligation under a defined benefit plan is defined as the present value of an amount
of pension benefits that employees will receive on retirement for their services with the
Group in current period or prior periods. The liability recognised in the balance sheet in
respect of defined benefit pension plans is the present value of the defined benefit
obligation at the balance sheet date less the fair value of plan assets. The defined benefit
net obligation is calculated annually by independent actuaries using the projected unit
credit method. The rate used to discount is determined by using interest rates of
high-quality corporate bonds that are denominated in the currency in which the benefits
will be paid, and that have terms to maturity approximating to the terms of the related
pension liability; when there is no deep market in high-quality corporate bonds, the
Group uses interest rates of government bonds (at the balance sheet date) instead.
ii. Remeasurement arising on defined benefit plans is recognised in other comprehensive
income in the period in which they arise and are recorded as retained earnings.
iii. Past service costs are recognised immediately in profit or loss.
Six-month period Six-month periodended June 30, 2015 ended June 30, 2014
Net cash provided by (used in) operating
activities 3,472,955$ 3,458,272$Net cash provided by (used in) investing
activities 17,201,317)( 1,258,822)(Net cash provided by (used in) financing
activities 1,440,826 1,221,987)(Effect of exchange rates on cash and cash
equivalents 1,146,350)( 501,065)(
Increase (decrease) in cash and cash
equivalents 13,433,886)( 476,398
Cash and cash equivalents, beginning of
period 40,780,371 37,342,245
Cash and cash equivalents, end of period 27,346,485$ 37,818,643$
DIH
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iv. Pension cost for the interim period is calculated on a year-to-date basis by using the
pension cost rate derived from the actuarial valuation at the end of the prior financial year,
adjusted for significant market fluctuations since that time and for significant
curtailments, settlements, or other significant one-off events. Also, the related information
is disclosed accordingly.
B. Employees’, directors’ and supervisors’ remuneration
Employees’ remuneration and directors’ and supervisors’ remuneration are recognised as
expenses and liabilities, provided that such recognition is required under legal obligation or
constructive obligation and those amounts can be reliably estimated.
(5) Income tax
The interim period income tax expense is recognised based on the estimated average annual
effective income tax rate expected for the full financial year applied to the pretax income of the
interim period, and the related information is disclosed accordingly.
(6) Business combinations
The Group uses the acquisition method to account for business combinations. The consideration
transferred for an acquisition is measured as the fair value of the assets transferred, liabilities
incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any
assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related
costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair values at the acquisition date.
For each business combination, the Group measures at the acquisition date components of
non-controlling interests in the acquiree that are present ownership interests and entitle their holders
to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or
the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s
identifiable net assets. All other non-controlling interests should be measured at the acquisition-date
fair value.
5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF
ASSUMPTION UNCERTAINTY
Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2014.
6. DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash and cash equivalents
June 30, 2015 December 31, 2014 June 30, 2014
Cash on hand 5,810$ 6,052$ 6,056$Checking and demand deposits 41,492,811 49,206,516 23,629,737Time deposits 18,760,256 24,247,250 36,868,699
Total 60,258,877$ 73,459,818$ 60,504,492$
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A. The Group associates with a variety of financial institutions all with high credit quality to
disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Details of the Group’s cash and cash equivalents pledged to others as collateral are provided in
Note 8.
(2) Financial assets at fair value through profit or loss
A. The Group recognised net gain (loss) on financial assets held for trading of ($49,859), $18,637,
$14,794 and ($4,352) for the three-month and six-month periods ended June 30, 2015 and
2014, respectively. The Group recognised net gain (loss) on financial assets designated as at
June 30, 2015 December 31, 2014 June 30, 2014
Current items:
Financial assets held for
trading
Listed stocks 40,593$ 26,573$ 36,403$
Convertible bonds 3,400 4,500 18,000
43,993 31,073 54,403Valuation adjustment of
financial assets held for
trading 10,078 8,553 21,564
Subtotal 54,071 39,626 75,967
Financial asset designated as
at fair value throughprofit or loss on initial
recognition
Convertible bonds - - 28,844
Subtotal - - 28,844
Total 54,071$ 39,626$ 104,811$
June 30, 2015 December 31, 2014 June 30, 2014
Non-current items:
Financial assets designated
as at fair value through
profit or lossConvertible bonds 191,212$ 96,700$ 147,158$
Valuation adjustment of
financial assets designated
as at fair value through
profit or loss on initial
recognition 37,928 19,224 16,577
Total 229,140$ 115,924$ 163,735$
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fair value through profit or loss on initial recognition of ($2,217), $339, $18,704 and $3,468
for the three-month and six-month periods ended June 30, 2015 and 2014, respectively.
B. The counterparties of the Group’s private placement of convertible bonds are mostly listed
companies in Taiwan and overseas. The Group expects that the counterparties of the private
placement of convertible bonds that it invested in are not likely to default.
C. The non-hedging derivative instrument transactions and contract information are as follows:
Contract period
Forward exchange contracts:
- Sell USD / Buy RMB USD 139,600 2015.03.09~2015.10.26
- Buy USD / Sell EUR EUR 4,000 2015.04.07~2015.09.29
- Sell USD / Buy SGD SGD 15,804 2014.09.09~2016.06.02
- Sell USD / Buy TWD USD 17,500 2015.05.20~2015.09.25
- Sell EUR / Buy TWD EUR 71 2015.04.30~2015.08.25
- Sell USD / Buy JPY USD 2,597 2015.06.08~2015.07.23
- Sell USD / Buy EUR EUR 2,400 2015.06.05~2015.07.13
- Sell USD / Buy CZK CZK 34,500 2015.03.09~2015.10.26
- Sell JPY / Buy USD JPY 2,000 2015.04.14~2015.07.03
- Sell USD / Buy HKD HKD 95,665 2015.03.16~2015.10.05
- Buy USD / Sell KRW USD 465 2015.06.10~2015.07.28
- Buy NOK / Sell GBP GBP 500 2015.01.26~2015.07.15
- Buy NOK / Sell AUD AUD 3,000 2014.12.16~2015.11.16
- Buy NOK / Sell EUR EUR 1,000 2014.10.10~2016.09.15
- Sell USD / Buy RMB USD 3,000 2014.12.16~2015.12.25
Currency option contract
- Buy a put option on EUR /
Buy a call option on NOK
EUR 4,025 2014.03.14~2016.10.07
- Sell a put option on EUR /
Sell a put option on NOK
EUR 8,050 2014.03.14~2016.10.07
Cross currency swap
- Buy NOK / Sell AUD AUD 1,300 2014.11.24~2015.07.15
- Buy NOK / Sell EUR EUR 1,000 2014.12.16~2015.09.15
June 30, 2015
Contract amount (nominal
Financial instruments principal) (in thousands)
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The Group entered into forward exchange contracts to manage exposures to foreign exchange
rate fluctuations of import or export sales. However, the forward exchange transactions did not
meet the criteria for hedge accounting. Therefore, the Group did not apply hedge accounting.
D. The Group has no financial assets at fair value through profit or loss pledged to others.
Contract period
Forward exchange contracts:
- Sell USD / Buy RMB USD 584,500 2014.10.16~2015.06.30
- Buy USD / Sell EUR EUR 3,000 2014.09.25~2015.03.30
- Sell USD / Buy SGD SGD 17,469 2014.01.23~2015.11.04
- Buy USD / Sell SGD SGD 631 2014.04.03~2015.01.14
- Sell USD / Buy TWD USD 14,000 2014.10.16~2015.02.25
- Sell EUR / Buy TWD EUR 40 2014.12.11~2015.02.04
- Sell USD / Buy JPY USD 2,500 2014.11.14~2015.02.09
- Buy USD / Sell JPY USD 1,000 2014.12.02~2015.01.20
- Sell USD / Buy EUR EUR 4,200 2014.10.30~2015.02.12
- Sell USD / Buy CZK CZK 20,000 2014.12.03~2015.01.22
- Buy USD / Sell RMB USD 102,000 2014.12.05~2015.03.25
- Sell JPY / Buy USD JPY 1,500 2014.12.16~2015.03.04
Financial instruments principal) (in thousands)
December 31, 2014
Contract amount (nominal
Contract period
Forward exchange contracts:
- Sell USD / Buy RMB USD 102,900 2014.04.02~2014.09.10
- Buy USD / Sell EUR EUR 6,600 2014.04.25~2014.09.29
- Sell USD / Buy SGD SGD 12,497 2013.09.03~2015.03.03
Buy USD / Sell SGD SGD 631 2014.04.03~2015.01.14
- Sell USD / Buy TWD USD 5,800 2014.06.05~2014.07.25
- Sell EUR / Buy TWD EUR 30 2014.06.06~2014.09.25
- Sell USD / Buy JPY USD 4,800 2014.04.15~2014.08.20
- Sell USD / Buy EUR EUR 2,300 2014.05.05~2014.07.14
- Sell USD / Buy CZK CZK 9,000 2014.06.10~2014.07.23
- Sell JPY / Buy USD JPY 1,500 2014.06.16~2014.08.04
- Buy USD / Sell KRW USD 1,025 2014.05.08~2014.08.28
- Buy USD / Sell RMB USD 21,000 2014.06.25~2014.07.02
June 30, 2014
Contract amount (nominal
Financial instruments principal) (in thousands)
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(3) Available-for-sale financial assets
A. The Group recognised ($690,480), $173,945, ($866,436) and ($384,747) in other
comprehensive income (loss) for fair value change and reclassified ($165,593), $133,575,
($244,977) and $113,001 from equity to profit or loss for the three-month and six-month periods
ended June 30, 2015 and 2014, respectively.
B. The net asset value of the Group’s equity investment in WK Technology Fund V and WK
Technology Fund VIII declined significantly to below its initial investment cost. Accordingly,
the Group recognised impairment loss of $15,549 for the six-month period ended June 30, 2014.
C. The Group has no debt instruments available-for-sale financial assets.
D. The net asset value of the Group’s equity investment in HELIO Optoelectronics Corp. declined
significantly to below its initial investment cost. Accordingly, the Group recognised impairment
loss of $14,422 for 2015.
E. As of June 30, 2015, December 31, 2014 and June 30, 2014, the Group has no available-for-sale
financial assets pledged to others.
June 30, 2015 December 31, 2014 June 30, 2014
Current items:
Listed stocks 578,579$ 947,304$ 709,367$
Emerging stocks 29,481 36,526 -Valuation adjustment of
available-for-sale
financial assets 52,903)( 295,506)( 23,630
555,157$ 688,324$ 732,997$
Non-current items:
Listed stocks 4,375,822$ 4,594,911$ 3,900,385$
Emerging stocks 576,184 141,000 254,492
Unlisted stocks 1,226,657 1,356,108 1,169,849
6,178,663 6,092,019 5,324,726
81,381 945,512 1,590,483
Accumulated impairment-
available-for-sale financial
assets 84,854)( 70,432)( 57,561)(
6,175,190$ 6,967,099$ 6,857,648$
Valuation adjustment of
available-for-sale
financial assets
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(4) Financial assets measured at cost
Based on the Group’s intention, its stock investments should be classified as available-for-sale
financial assets. However, as those stocks are not traded in active market, and sufficient industry
information of companies similar to stocks investment companies and their financial information
cannot be obtained, the fair value of the stock investments cannot be measured reliably. The
Group classified those stocks as financial assets measured at cost.
(5) Hedge accounting
A. The Group entered into derivative financial instruments contracts with a variety of financial
institutions with high credit quality and the Group deals with several banks to disperse the credit
risk. The maximum exposure to credit risk at balance sheet date is the carrying amount of
derivative financial instruments for hedging.
B. Fair value hedge
In order to prevent the fair value risk of the committed future investment arising from foreign
exchange rate movements become unpredicted, the Group entered into forward foreign exchange
contracts to hedge.
Details of gains and losses on hedging instruments and on hedged items are provided in Note
6(27).
C. Cash flow hedge
In order to prevent the risk resulting from future cash flow fluctuation due to foreign exchange
rate fluctuations, the Group entered into foreign currency forward contracts which meet all
criteria for hedge accounting. The related information is as follows:
June 30, 2015 December 31, 2014 June 30, 2014
Non-current items:
Unlisted stocks 771,146$ 773,911$ 424,747$
Accumulated impairment -
financial assets measured
at cost 24,624)( 25,150)( 23,961)(
746,522$ 748,761$ 400,786$
June 30, 2015 December 31, 2014 June 30, 2014
Items Assets (Liabilities) Assets (Liabilities) Assets (Liabilities)
Current items:
Forward foreign exchange
contracts
- Cash flow hedge -$ -$ 12,931)($
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(a) The hedged highly probable forecast transactions denominated in foreign currency are
expected to occur during the next 12 months. Amounts accumulated in other comprehensive
income as of June 30, 2014 are recycled into profit or loss in the period or periods when the
hedged item affects profit or loss.
(b) Information about gain or loss arising from cash flow hedges recognised in profit or loss and
other comprehensive income:
(6) Accounts receivable and overdue receivables
Period of
Derivative gain (loss)
instruments Period of expected to be
Hedged designated Fair value anticipated recognized in
items as hedges June 30, 2014 cash flow profit or loss
Payables in
foreign currencies
Forward exchange
contracts
($ 12,931) 2014.08.12
~2014.10.09
2014.08.12
~2014.10.09
Designated for hedging instruments
Items 2015 2014
Amount of gain or loss adjusted in other
comprehensive income -$ 3,242$
Amount of gain or loss transferred from
other comprehensive income to profit
or loss - 2,209)(
Items 2015 2014
Amount of gain or loss adjusted in other -$ 20,176)($
comprehensive income
Amount of gain or loss transferred from - 3,474
other comprehensive income to profit
or loss
Three-month periods ended June 30,
Six-month periods ended June 30,
June 30, 2015 December 31, 2014 June 30, 2014
Accounts receivable 43,849,647$ 43,711,298$ 40,337,751$
Less: Allowance for doubtful
accounts 1,107,310)( 755,087)( 700,400)(
42,742,337 42,956,211 39,637,351
Overdue receivables (shown
as other non-current assets) 82,355 80,029 74,521Less: Allowance for doubtful
accounts 82,355)( 80,029)( 74,521)(
42,742,337$ 42,956,211$ 39,637,351$
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A. The Group took out a credit insurance on the accounts receivable from certain main customers,
whereby 90% of the receivable amount can be covered when the receivables are uncollectible.
B. The aging analysis of accounts receivable that were past due but not impaired is as follows:
The above aging analysis was based on past due date.
C. Movements on the Group’s provision for impairment of accounts receivable are as follows:
D. The credit quality of accounts receivable that were neither past due nor impaired was in the
following categories based on the Group’s credit quality control policy:
June 30, 2015 December 31, 2014 June 30, 2014
Up to 90 days 2,307,796$ 2,554,237$ 2,098,427$
91 to 180 days 414,096 377,851 601,358
181 to 365 days 525,461 646,493 251,398
Over 365 days 706,147 432,783 532,111
3,953,500$ 4,011,364$ 3,483,294$
Individual Groupprovision provision Total
At January 1 80,029$ 755,087$ 835,116$
Acquired through business
combinations - 168,232 168,232
Provision for impairment 7,199 214,237 221,436Write-offs during the
period 2,690)( 4,577)( 7,267)(Transfer to revenue 198)( - 198)(Net exchange differences 1,985)( 25,669)( 27,654)(
At June 30 82,355$ 1,107,310$ 1,189,665$
Six-month period ended June 30, 2015
Individual Group
provision provision Total
At January 1 75,700$ 572,420$ 648,120$
Provision for impairment 2,514 184,978 187,492
Write-offs during the
period 3,856)( 45,676)( 49,532)(
Net exchange differences 163 11,322)( 11,159)(
At June 30 74,521$ 700,400$ 774,921$
Six-month period ended June 30, 2014
June 30, 2015 December 31, 2014 June 30, 2014
Group 1 21,487,207$ 26,956,282$ 22,614,748$
Group 2 17,301,629 11,988,565 13,539,309
38,788,836$ 38,944,847$ 36,154,057$
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Group 1: Medium to low risk customers: These customers include large enterprise groups which
are operating well, financial transparency is high and approved by the headquarters’
credit controller as well as government and educational institutions.
Group 2: Normal risk customers: Customers other than the medium to low risk customers.
(7) Transfer of financial assets
The Group entered into a factoring agreement with financial institutions to sell its accounts
receivable. Under the agreement, the Group is not required to bear the default risk of the accounts
receivable and the percentage of advance payments is zero, but is liable for the losses incurred on
any business dispute. As of June 30, 2015, December 31, 2014 and June 30, 2014, the relevant
information of unsettled accounts receivable that were sold is set forth below:
(8) Inventories
Purchaser of Accounts Interest rate ofaccounts receivable Amount Amount amount
receivable transferred derecognised Facilities advanced advanced
Taishin International
Bank79,261$ -$ 308,600$ -$ -$
Purchaser of Accounts Interest rate ofaccounts receivable Amount Amount amount
receivable transferred derecognised Facilities advanced advanced
Taishin International
Bank47,249$ -$ 443,100$ -$ -$
Purchaser of Accounts Interest rate ofaccounts receivable Amount Amount amount
receivable transferred derecognised Facilities advanced advanced
Taishin International
Bank135,111$ -$ 418,110$ -$ -$
June 30, 2015
December 31, 2014
June 30, 2014
Allowance forCost valuation loss Book value
Raw materials 7,097,952$ 997,728)($ 6,100,224$
Work in process 1,905,045 - 1,905,045
Finished goods 15,538,653 1,310,154)( 14,228,499
Inventory in transit 139,500 - 139,500
24,681,150$ 2,307,882)($ 22,373,268$
June 30, 2015
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Allowance forCost valuation loss Book value
Raw materials 6,368,533$ 536,922)($ 5,831,611$
Work in process 1,697,115 - 1,697,115
Finished goods 14,441,030 796,464)( 13,644,566
Inventory in transit 398,683 - 398,683
22,905,361$ 1,333,386)($ 21,571,975$
Allowance forCost valuation loss Book value
Raw materials 5,932,036$ 459,268)($ 5,472,768$
Work in process 1,653,363 - 1,653,363
Finished goods 11,962,024 702,693)( 11,259,331
Inventory in transit 330,809 - 330,809
19,878,232$ 1,161,961)($ 18,716,271$
December 31, 2014
June 30, 2014
2015 2014
Cost of goods sold 34,709,769$ 33,873,900$
Provision for inventory obsolescence and
market price decline 226,187 110,894
Others 149,643 106,372
35,085,599$ 34,091,166$
2015 2014
Cost of goods sold 65,907,508$ 64,965,814$
Provision for inventory obsolescence and
market price decline 417,874 120,545
Others 401,185 270,055
66,726,567$ 65,356,414$
Three-month periods ended June 30,
Six-month periods ended June 30,
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(9) Investments accounted for under the equity method
A. Details of investments accounted for under the equity method are set forth below:
Note: The percentage of ownership in associates represent the percentage of common shares
held by the Group.
B. Share of profit (loss) of associates accounted for under the equity method are set forth below:
C. The financial statements of DET were reviewed by other independent accountants. Investment
accounted for under the equity method amounted to $6,221,419 and $5,882,200 as of June 30,
2015 and 2014, respectively, and the share of profit and other comprehensive income of
associates accounted for under the equity method was $308,495, $270,304, $560,039 and
$566,744 for the three-month and six-month periods ended June 30, 2015 and 2014,
respectively.
D. The financial statements of the above associates were not reviewed by independent accountants.
Investments accounted for under the equity method in these companies amounted to $553,779
and $591,903 as of June 30, 2015 and 2014, respectively, and the share of loss and other
% % %
Name of associates (Note) Book value (Note) Book value (Note) Book value
Delta Electronics (Thailand)
Public Co., Ltd. (DET)
20.93 6,221,419$ 20.93 6,436,189$ 20.93 5,882,200$
Amita Technologies, Inc.
(Amita) 26.93 254,470 26.93 254,160 26.93 249,621
Digital Projection
International Ltd. (DPI) 41.00 251,176 41.00 292,213 32.11 253,574
Trillion Science Inc.
(Trillion), etc. 48,133 34,175 88,708
6,775,198$ 7,016,737$ 6,474,103$
June 30, 2015 December 31, 2014 June 30, 2014
Name of associates 2015 2014
DET 341,166$ 275,991$
DPI, etc. 35,965)( 13,219)(
305,201$ 262,772$
Name of associates 2015 2014
DET 640,780$ 536,478$
DPI, etc. 37,993)( 53,644)(
602,787$ 482,834$
Three-month periods ended June 30,
Six-month periods ended June 30,
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comprehensive income of associates accounted for under the equity method was ($32,144),
($12,508), ($37,406) and ($52,506) for the three-month and six-month periods ended June 30,
2015 and 2014, respectively.
E. The summarized financial information of the associates that are material to the Group is shown
below:
Note: The percentage of ownership in associates represent the percentage of common shares
held by the Group.
Principal place June 30, December 31, Nature of Method of
Company name of business 2015 2014 relationship measurement
Delta Electronics
(Thailand)
Public Co., Ltd.
(DET)
Thailand 20.93% 20.93% Holds more than
20% of voting
rights
Equity method
Principal place June 30, Nature of Method ofCompany name of business 2014 relationship measurement
Delta Electronics
(Thailand)
Public Co., Ltd.
(DET)
Thailand 20.93% Holds more than
20% of voting
rights
Equity method
Shareholding ratio (Note)
Shareholding ratio (Note)
Balance sheet
June 30, 2015 December 31, 2014 June 30, 2014
Current assets 30,457,625$ 31,228,433$ 27,426,591$
Non-current assets 5,559,143 5,754,072 6,102,828
Current liabilities 9,907,882)( 9,079,200)( 9,357,399)(
Non-current liabilities 1,565,489)( 1,633,589)( 1,161,609)(
Total net assets 24,543,397$ 26,269,716$ 23,010,411$
Share in associate's net assets 6,264,584$ 6,479,587$ 5,975,989$Unrealised upstream and
sidestream transactions 36,102)( 35,947)( -
Others 7,063)( 7,451)( 7,419)(
Carrying amount of the
associate 6,221,419$ 6,436,189$ 5,968,570$
DET
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F. The carrying amount of the Group’s interests in all individually immaterial associates and the
Group’s share of the operating results are summarised below:
As of June 30, 2015, December 31, 2014 and June 30, 2014, the carrying amount of the Group’s
individually immaterial associates amounted to $553,779, $580,548 and $591,903, respectively.
Statement of comprehensive income
Three-month period Three-month period
ended June 30, 2015 ended June 30, 2014
Revenue 10,810,305$ 10,301,656$
Profit for the period from continuing
operations 1,577,802$ 1,377,642$Loss for the period from discontinued
operations - -
Other comprehensive income, net of tax 442,988 30,546
Total comprehensive income 2,020,790$ 1,408,188$
Dividends received from associates -$ -$
Six-month period Six-month period
ended June 30, 2015 ended June 30, 2014
Revenue 21,531,283$ 20,435,230$
Profit for the period from continuing
operations 3,075,685$ 2,667,675$Loss for the period from discontinued
operations - -
Other comprehensive income, net of tax 24,941 11,677
Total comprehensive income 3,100,626$ 2,679,352$
Dividends received from associates 749,034$ 657,763$
DET
DET
Three-month period Three-month periodended June 30, 2015 ended June 30, 2014
Profit or loss for the period from continuing
operations32,372)($ 11,861$
Other comprehensive income, net of tax 149 2,190)(
Total comprehensive (loss) income 32,223)($ 9,671$
Six-month period Six-month period
ended June 30, 2015 ended June 30, 2014
Profit or loss for the period from continuing
operations68,818)($ 68,018)($
Other comprehensive income (loss), net of tax 1,055 1,789)(
Total comprehensive loss 67,763)($ 69,807)($
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G. The Group’s investment in DET has quoted market price. The fair value of DET as of June 30,
2015, December 31, 2014 and June 30, 2014 was $21,711,877, $17,800,959 and $15,105,363,
respectively.
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(10) Property, plant and equipmentUnfinished
construction
Machinery and Testing and equipment
At January 1, 2015 Land Buildings equipment equipment Others under acceptance Total
Cost 4,982,097$ 30,256,283$ 26,454,466$ 10,350,897$ 8,408,929$ 851,472$ 81,304,144$
Accumulated depreciation and
impairment 11,427)( 8,884,448)( 20,000,970)( 8,838,568)( 6,753,972)( - 44,489,385)(
4,970,670$ 21,371,835$ 6,453,496$ 1,512,329$ 1,654,957$ 851,472$ 36,814,759$
2015
Opening net book amount 4,970,670$ 21,371,835$ 6,453,496$ 1,512,329$ 1,654,957$ 851,472$ 36,814,759$
Additions 42,297 204,307 1,214,853 712,185 417,172 1,230,151 3,820,965
Acquired through business
combinations 13,427 533,965 69,063 238,166 184,991 - 1,039,612
Disposal - 11,629)( 62,667)( 4,116)( 12,178)( 5,216)( 95,806)(
Transfer - 126,727 163,056 16,572 124,083 430,438)( -
Depreciation charge - 827,990)( 1,404,519)( 491,383)( 563,510)( - 3,287,402)(
Net exchange differences 19,159)( 396,129)( 131,925)( 38,362)( 32,461)( 7,270)( 625,306)(
Closing net book amount 5,007,235$ 21,001,086$ 6,301,357$ 1,945,391$ 1,773,054$ 1,638,699$ 37,666,822$
At June 30, 2015
Cost 5,019,176$ 30,799,359$ 28,285,718$ 12,113,420$ 9,614,724$ 1,638,699$ 87,471,096$
Accumulated depreciation and
impairment 11,941)( 9,798,273)( 21,984,361)( 10,168,029)( 7,841,670)( - 49,804,274)(
5,007,235$ 21,001,086$ 6,301,357$ 1,945,391$ 1,773,054$ 1,638,699$ 37,666,822$
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Unfinished
construction
Machinery and Testing and equipment
At January 1, 2014 Land Buildings equipment equipment Others under acceptance Total
Cost 4,960,552$ 29,285,538$ 26,236,404$ 9,928,498$ 7,942,014$ 757,920$ 79,110,926$
Accumulated depreciation and
impairment 12,260)( 7,791,223)( 19,132,188)( 8,664,472)( 6,316,021)( - 41,916,164)(
4,948,292$ 21,494,315$ 7,104,216$ 1,264,026$ 1,625,993$ 757,920$ 37,194,762$
2014
Opening net book amount 4,948,292$ 21,494,315$ 7,104,216$ 1,264,026$ 1,625,993$ 757,920$ 37,194,762$
Additions - 158,976 625,844 374,992 409,151 850,971 2,419,934
Disposals - 34)( 27,864)( 1,151 26,195)( 5,784)( 58,726)(
Transfer 58,728)( 281,715)( 109,608 15,134 121,417 204,331)( 298,615)(
Depreciation charge - 797,077)( 1,372,708)( 447,880)( 579,129)( - 3,196,794)(
Net exchange differences 9,903 283,132)( 103,742)( 20,584)( 23,677)( 16,223)( 437,455)(
Closing net book amount 4,899,467$ 20,291,333$ 6,335,354$ 1,186,839$ 1,527,560$ 1,382,553$ 35,623,106$
At June 30, 2014
Cost 4,912,190$ 28,127,789$ 25,500,069$ 10,051,001$ 8,370,508$ 1,382,553$ 78,344,110$
Accumulated depreciation and
impairment 12,723)( 7,836,456)( 19,164,715)( 8,864,162)( 6,842,948)( - 42,721,004)(
4,899,467$ 20,291,333$ 6,335,354$ 1,186,839$ 1,527,560$ 1,382,553$ 35,623,106$
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(11) Investment property
Land Buildings Total
At January 1, 2015
Cost 465,724$ 4,321,469$ 4,787,193$
Accumulated depreciation
and impairment - 2,563,345)( 2,563,345)(
465,724$ 1,758,124$ 2,223,848$
2015
Opening net book amount 465,724$ 1,758,124$ 2,223,848$
Depreciation charge - 74,492)( 74,492)(
Closing net book amount 465,724$ 1,683,632$ 2,149,356$
At June 30, 2015
Cost 465,724$ 4,321,469$ 4,787,193$
Accumulated depreciation
and impairment - 2,637,837)( 2,637,837)(
465,724$ 1,683,632$ 2,149,356$
Land Buildings Total
At January 1, 2014
Cost 385,573$ 3,573,416$ 3,958,989$
Accumulated depreciation
and impairment - 1,998,536)( 1,998,536)(
385,573$ 1,574,880$ 1,960,453$
2014
Opening net book amount 385,573$ 1,574,880$ 1,960,453$
Reclassifications 58,728 239,887 298,615
Depreciation charge - 70,034)( 70,034)(
Closing net book amount 444,301$ 1,744,733$ 2,189,034$
At June 30, 2014
Cost 444,301$ 4,117,695$ 4,561,996$
Accumulated depreciation
and impairment - 2,372,962)( 2,372,962)(
444,301$ 1,744,733$ 2,189,034$
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A. Rental income from the lease of the investment property and direct operating expenses arising
from the investment property are shown below:
B. The fair value of the investment property held by the Group as at June 30, 2015, December 31,
2014 and June 30, 2014 was $2,470,502, $2,470,502 and $2,340,487, respectively, which was
revalued by the Group.
2015 2014
Rental revenue from the lease of the
investment property 58,870$ 58,495$
Direct operating expenses arising from the
investment property that generated rental
income for the period -$ -$
Direct operating expenses arising from the
investment property that did not generate
rental income for the period 5,406$ 5,854$
2015 2014
Rental revenue from the lease of the
investment property 117,520$ 116,870$
Direct operating expenses arising from the
investment property that generated rental
income for the period -$ -$
Direct operating expenses arising from the
investment property that did not generate
rental income for the period 12,099$ 12,202$
Three-month periods ended June 30,
Six-month periods ended June 30,
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(12) Intangible assetsCustomer Technical
At January 1, 2015 Trademarks Patents Goodwill Relationship Skill Others Total
Cost 413,165$ 1,013,508$ 7,017,700$ 5,207,669$ -$ 1,637,465$ 15,289,507$
Accumulated depreciation and
impairment6,860)( 996,953)( 27,263)( 1,764,515)( - 787,901)( 3,583,492)(
406,305$ 16,555$ 6,990,437$ 3,443,154$ -$ 849,564$ 11,706,015$
2015
Opening net book amount 406,305$ 16,555$ 6,990,437$ 3,443,154$ -$ 849,564$ 11,706,015$
Additions-acquired separately - 7,050 - - - 173,253 180,303
Additions-acquired through business
combinations2,252,660 - 5,591,157 2,819,726 3,011,486 128,492 13,803,521
Amortization 33,510)( 1,793)( - 284,371)( 42,599)( 239,953)( 602,226)(
Net exchange differences 17,989 - 4,779)( 66,313)( 24,049 22,654 6,400)(
Closing net book amount 2,643,444$ 21,812$ 12,576,815$ 5,912,196$ 2,992,936$ 934,010$ 25,081,213$
At June 30, 2015
Cost 2,665,825$ 1,016,197$ 12,604,078$ 7,942,065$ 3,011,486$ 2,437,333$ 29,676,984$
Accumulated depreciation and
impairment22,381)( 994,385)( 27,263)( 2,029,869)( 18,550)( 1,503,323)( 4,595,771)(
2,643,444$ 21,812$ 12,576,815$ 5,912,196$ 2,992,936$ 934,010$ 25,081,213$
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Customer
At January 1, 2014 Trademarks Patents Goodwill Relationship Others Total
Cost 413,165$ 1,045,014$ 6,906,772$ 3,784,422$ 1,381,174$ 13,530,547$
Accumulated depreciation and impairment 3,567)( 840,984)( - 1,280,410)( 547,710)( 2,672,671)(
409,598$ 204,030$ 6,906,772$ 2,504,012$ 833,464$ 10,857,876$
2014
Opening net book amount 409,598$ 204,030$ 6,906,772$ 2,504,012$ 833,464$ 10,857,876$
Additions - acquired separately - 224 - - 128,341 128,565
Additions - acquired through business combinations - - 537 - - 537
Reclassifications - 1,006)( - - 1,006 -
Amortization 1,646)( 99,290)( - 202,013)( 190,738)( 493,687)(
Net exchange differences - 224 3,478 4,045 149)( 7,598
Closing net book amount 407,952$ 104,182$ 6,910,787$ 2,306,044$ 771,924$ 10,500,889$
At June 30, 2014
Cost 413,165$ 1,000,306$ 6,910,787$ 3,785,816$ 1,368,005$ 13,478,079$
Accumulated depreciation and impairment 5,213)( 896,124)( - 1,479,772)( 596,081)( 2,977,190)(
407,952$ 104,182$ 6,910,787$ 2,306,044$ 771,924$ 10,500,889$
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A. Details of amortisation on intangible assets are as follows:
B. The Group bought registered or under-application trademarks rights such as ,
, VIVITEK, 麗訊 , and . Trademarks registered in
certain countries are assessed to have finite useful lives. The remaining trademarks which have
indefinite useful lives shall not be amortized but are tested for impairment annually.
C. Goodwill and trademarks with indefinite useful lives are allocated as follows to the Group’s
cash-generating units identified according to operating segment:
Acquisition prices in business combination are calculated by the price of acquisition and direct
costs for related acquisition. The amount of goodwill recognised is the difference of the
acquisition prices less net fair value of identifiable assets acquired. The amortisation duration
of acquisition price may not exceed one year after the acquisition.
2015 2014
Operating costs 528$ 5,233$
Selling expenses 274,888 54,659
Administrative expenses 15,004 33,870
Research and development expenses 77,753 143,272
368,173$ 237,034$
2015 2014
Operating costs 6,712$ 11,289$
Selling expenses 384,330 145,397
Administrative expenses 50,323 83,926
Research and development expenses 160,861 253,075
602,226$ 493,687$
Three-month periods ended June 30,
Six-month periods ended June 30,
June 30, 2015 December 31, 2014 June 30, 2014
Goodwill:
Cyntec and its 5,124,137$ 5,124,137$ 5,124,137$
subsidiaries
DGC 1,789,182 1,834,985 1,731,495
Eltek 5,568,655 - -
Others 94,841 31,315 55,155
12,576,815$ 6,990,437$ 6,910,787$
Trademarks:
Smart green life
business 386,823$ 386,823$ 386,823$
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D. Goodwill and trademarks with indefinite useful lives are allocated to the Group’s
cash-generating units identified according to operating segment. The recoverable amount of all
cash-generating units has been determined based on value-in-use calculations. These
calculations use pre-tax cash flow projections based on financial budgets approved by the
management covering a five-year period.
The recoverable amount of all cash-generating units calculated using the value-in-use exceeded
their carrying amount, so goodwill and indefinite useful lives trademarks were not impaired.
The key assumptions used for value-in-use calculations are gross margin, growth rate and
discount rate.
Management determined budgeted gross margin based on past performance and its
expectations of market development. The weighted average growth rates used are consistent
with the forecasts included in industry reports. The discount rates used are pre-tax and reflect
specific risks relating to the relevant operating segments.
E. The subsidiary – Ayecom Technology Co., Ltd. was merged into Delta Networks., Ltd. (Taiwan)
starting from the effective date of consolidation of January 1, 2015. The Group has assessed
and recognised impairment loss on goodwill and customer relationship of $28,435 for the year
ended December 31, 2014.
(13) Other non-current assets
(14) Short-term borrowings
As the subsidiary, Eltek Power System As, violated the borrowing contract with Nordea, the bank
required that the borrowing of $4,182,087 be repaid on September 1, 2015. Accordingly, said
amount is disclosed as short-term borrowing.
June 30, 2015 December 31, 2014 June 30, 2014
Long-term prepaid rent 1,250,962$ 1,296,245$ 1,211,989$
Prepayments for business
facilities 1,065,517 1,030,137 1,124,560
Guarantee deposits paid 152,376 121,209 146,347
Cash surrender value of life
insurance 102,057 111,650 114,607
Others 134,511 100,187 154,142
2,705,423$ 2,659,428$ 2,751,645$
June 30, 2015 December 31, 2014 June 30, 2014
Unsecured bank loans 12,172,321$ 5,801,298$ 5,778,802$
Credit lines 85,887,672$ 83,349,486$ 86,061,884$
Interest rate per annum 0.53%~2.97% 0.53%~2.16% 0.43%~2.16%
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(15) Financial liabilities at fair value through profit or loss
A. The Group recognized net gain (loss) of $9,807, $16,667, $20,172 and ($1,208) for the
three-month and six-month periods ended June 30, 2015 and 2014, respectively.
B. The non-hedging derivative instruments transaction and contract information are provided in
Note 6(2)C.
The Group entered into forward exchange contracts to manage exposures to foreign exchange
rate fluctuations of import or export sales. However, these transactions did not meet all the
criteria for hedge accounting. Therefore, the Group did not apply the hedge accounting.
(16) Long-term borrowings
As of June 30, 2015, the revolving loans of $20,818,373 can be drawn down during the period
from February 25, 2011 to July 29, 2017 and are payable before the due date under the agreement.
(17) Pensions
A. a) The Group has a defined benefit pension plan as follows:
i. The Company and its domestic subsidiaries have a defined benefit pension plan in
accordance with the Labor Standards Law, covering all regular employees’ service years
prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years
thereafter of employees who chose to continue to be subject to the pension mechanism
under the Law. Under the defined benefit pension plan, two units are accrued for each
year of service for the first 15 years and one unit for each additional year thereafter,
subject to a maximum of 45 units. Pension benefits are based on the number of units
accrued and the average monthly salaries and wages of the last 6 months prior to
retirement. The Company contributes monthly an amount equal to 2% of the employees’
monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the
trustee, under the name of the independent retirement fund committee.
June 30, 2015 December 31, 2014 June 30, 2014
Current item:
Valuation adjustment of non-
hedging derivatives 13,948$ 51,606$ 3,652$
Type of borrowings June 30, 2015 December 31, 2014 June 30, 2014
Credit loans 20,861,732$ 26,520,214$ 6,627,999$
Less: Current portion (shown
as other current liabilities) 43,359)( 52,111)( 58,839)(
20,818,373$ 26,468,103$ 6,569,160$
Credit lines 45,416,242$ 33,894,214$ 32,844,176$
Interest rate per annum 0.43%~0.83% 0.43%~0.90% 0.42%~0.79%
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ii. Certain subsidiaries located in Mainland China maintain defined benefit retirement
(resignation) plans with relative contribution scheme. The employees and the
subsidiaries contribute an amount relatively based on a certain percentage of the monthly
basic salary depending on the employee’s position. When an employee retires or resigns,
the total contribution from the employee is reimbursed based on the accumulated
contribution (without interest) less withdrawals made by the employee in advance during
the service period. The employee is also entitled to receive benefits calculated based on
the accumulated contribution (without interest) from the related subsidiary multiplied by
the approved benefit percentage for the employee’s service years less withdrawals made
by the employee in advance during the service period. The scheme mentioned above
ceased on August 1, 2014. The amount contributed before was archived, and the scheme
of payment was not changed.
b) For the aforementioned pension plan, the Group recognised pension costs of $26,970,
$49,579, $54,683 and $88,408 for the three-month periods ended June 30, 2015 and 2014,
and six-month periods ended June 30, 2015 and 2014, respectively.
c) Expected contributions to the defined benefit pension plans of the Group for the year ended
December 31, 2015 are $54,156.
B. a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a
defined contribution pension plan (the “New Plan”) under the Labor Pension Act, covering
all regular employees with R.O.C. nationality. Under the New Plan, the Company and its
domestic subsidiaries contribute monthly an amount based on 6% of the employees’
monthly salaries and wages to the employees’ individual pension accounts at the Bureau of
Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination
of employment. The pension costs under the defined contribution pension plans of the
Company and its domestic subsidiaries for the three-month and six-month periods ended
June 30, 2015 and 2014 were $70,479, $65,237, $140,348 and $130,191, respectively.
b) Other overseas companies have defined contribution plans in accordance with the local
regulations.
(18) Share-based payment
A. NEM’s share-based payment transactions
a) For the six-month periods ended June 30, 2015 and 2014, NEM’s share-based payment
transactions are set forth below:
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Type of Grant Quantity Contract
arrangement date granted period Vesting conditions
First employee 2009.11.25 572,600 8 years Two years’ service vested 50%;
stock options three years’ service vested 75%;
compensation plan four years’ service vested 100%
Second 2010.04.30 590,000 8 years 〃
employee stock
options
compensation plan
Third employee 2010.12.21 388,000 8 years 〃
stock options
compensation plan
Fourth employee 2011.12.21 1,299,400 8 years 〃
stock options
compensation plan
Fifth employee 2012.12.10 847,000 8 years 〃
stock options
compensation plan
Sixth employee 2013.03.11 155,000 8 years 〃
stock options
compensation plan
Seventh employee 2013.07.29 40,000 8 years 〃
stock options
compensation plan
Eighth employee 2013.10.28 65,000 8 years 〃
stock options
compensation plan
Ninth employee 2014.04.29 1,433,600 8 years 〃
stock options
compensation plan
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b) Details of the employee stock options compensation plan of NEM are set forth below:
c) The expiry date and exercise price of stock options outstanding at balance sheet date are as
follows:
Weighted- Weighted-
average average
No. of exercise price No. of exercise price
shares (in dollars) shares (in dollars)
Options outstanding at 2,885,000 10$ 2,623,400 10$
beginning of the period
Options granted - - 1,433,600 10
Options exercised - - - -
Options forfeited 1,478,000)( 10 542,000)( 10
Options outstanding at
end of the period 1,407,000 10$ 3,515,000 10$
Options exercisable at
end of the period 446,800 795,200
Six-month periods ended June 30,
2015 2014
Exercise Exercise
Issue date No. of price No. of price
approved Expiry date shares (in dollars) shares (in dollars)
2009.11.25 2017.11.24 2,000 10$ 157,000 10$
2010.04.30 2018.04.29 25,000 10 125,000 10
2010.12.21 2018.12.20 68,000 10 288,000 10
2011.12.21 2019.12.20 154,400 10 194,400 10
2012.12.10 2020.12.09 357,000 10 582,000 10
2013.03.11 2021.03.10 115,000 10 155,000 10
2013.07.29 2021.07.28 - 10 40,000 10
2013.10.28 2021.10.27 25,000 10 65,000 10
2014.04.29 2022.04.28 660,600 10 1,278,600 10
June 30, 2015 Deccember 31, 2014
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d) The fair value of employee stock options of NEM granted on grant date is measured using
the Black-Scholes option-pricing model. Relevant information is as follows:
Note: Expected price volatility rate was estimated by using the stock prices of the most
recent period with length of this period approximate to the length of the stock
options’ expected life, and the standard deviation of return on the stock during this
period.
Exercise
Issue date No. of price
approved Expiry date shares (in dollars)
2009.11.25 2017.11.24 217,000 10$
2010.04.30 2018.04.29 125,000 10
2010.12.21 2018.12.20 288,000 10
2011.12.21 2019.12.20 474,400 10
2012.12.10 2020.12.09 717,000 10
2013.03.11 2021.03.10 155,000 10
2013.07.29 2021.07.28 40,000 10
2013.10.28 2021.10.27 65,000 10
2014.04.29 2022.04.28 1,433,600 10
June 30, 2014
Expected
Stock Exercise price Exercise Risk-free Fair value
Type of Grant price (in price (in volatility option Expected interest per unit
arrangement date dollars) dollars) (Note) life dividends rate (in dollars)
First 2009.11.25 3.49$ 10$ 55.50% 5.375 years 0% 1.25% 0.8315$
Second 2010.04.30 5.27 10 51.68% 5.38 years 0% 1.30% 1.5746
Third 2010.12.21 6.87 10 48.62% 5.38 years 0% 1.13% 2.3217
Fourth 2011.12.21 4.81 10 50.18% 5.38 years 0% 1.09% 1.2495
Fifth 2012.12.10 2.85 10 47.48% 5.38 years 0% 0.99% 0.3621
Sixth 2013.03.11 2.79 10 49.57% 5.38 years 0% 1.19% 0.3984
Seventh 2013.07.29 1.44 10 47.81% 5.38 years 0% 1.23% 0.0707
Eighth 2013.10.28 1.46 10 46.28% 5.38 years 0% 1.31% 0.0632
Ninth 2014.04.29 0.23 10 43.34% 5.38 years 0% 1.17% 0.0001
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B. Expenses incurred on share-based payment transactions are shown below:
(19) Share capital
A. In accordance with the Company’s Articles of Incorporation, the total authorized common
stock is 2.7 billion shares (including 100 million shares for stock warrants conversion). As of
June 30, 2015 and 2014, the total issued and outstanding common stock was both 2,437,543
thousand shares with par value of $10 (in dollars) per share.
B. On December 20, 2004, the Board of Directors of the Company adopted a resolution that
allowed certain stockholders to issue 16 million units of global depository receipts (GDRs),
represented by 80 million shares of common stock (Deposited Shares), with one unit of GDR
representing 5 shares of common stock. After obtaining approval from SFB, these GDRs were
listed on the Securities Exchange of Luxembourg, with total proceeds of US$134,666 thousand.
The issuance of GDRs was represented by outstanding shares, therefore, there is no dilutive
effect on the common shares’ equity. The main terms and conditions of the GDRs are as
follows:
a. Voting rights
GDR holders may, pursuant to the Depositary Agreement and the relevant laws and
regulations of the R.O.C., exercise the voting rights pertaining to the underlying common
shares represented by the GDRs.
b. Redemption of GDRs
For sales and redemption of the underlying common shares represented by the GDRs when
the holders of the GDRs request the Depositary to redeem the GDRs in accordance with the
relevant R.O.C. regulations and the provisions in the Depositary Agreement, the Depositary
may (i) deliver the underlying common shares represented by the GDRs to the GDR
holders, or (ii) sell the underlying common shares represented by the GDRs in the R.O.C.
stock market on behalf of the GDR holder. The payment of proceeds from such sale shall be
made subject to the relevant R.O.C. laws and regulations and the provisions in the
Depositary Agreement.
2015 2014
Equity-settled -$ 158$
Cash-settled - -
-$ 158$
2015 2014
Equity-settled -$ 316$
Cash-settled - -
-$ 316$
Three-month periods ended June 30,
Six-month periods ended June 30,
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c. Distribution of dividends, preemptive rights and other rights
Distribution of dividends, preemptive rights and other rights and interests of GDR units
bear the same rights as common shares.
d. After considering the stock dividend distribution year by year, as of June 30, 2015, there
were 1,099 thousand units outstanding, representing 5,494 thousand common shares of the
Company’s common stock.
(20) Capital surplus
Pursuant to the R.O.C. Company Law, capital surplus arising from paid-in capital in excess of par
value on issuance of common stocks and donations can be used to cover accumulated deficit or to
issue new stocks or cash to shareholders in proportion to their share ownership, provided that the
Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires
that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the
paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless
the legal reserve is insufficient.
(21) Retained earnings
A. Under the Company’s Articles of Incorporation approved by the shareholders on June 10, 2015,
the current year’s earnings, if any, shall be distributed in the following order:
a. Payment of all taxes and dues.
b. Offset against prior years' operating losses, if any.
c. Set aside 10% of the remaining amount as legal reserve, unless the accumulated amount of
the legal reserve has reached the total authorized capital of the Company.
d. Setting aside or reversing a special reserve according to relevant regulations when
necessary.
e. The amount of distributable earnings after deducting items a, b, c and d is considered as the
distributable earnings for the year, and the appropriation is as follows:
(a) Directors' remuneration: up to 1% of the earnings.
(b) Employees' bonus: at least 3% of the earnings. The Company can issue the employee
stock bonus to qualified employees of subsidiaries. The related regulations should be
authorized by the Company’s Board of Directors or authorized person.
(c) Stockholders' bonus: The remainder along with beginning unappropriated earnings is
accumulated distributable earnings. As the Company is in the growth stage, and taking
into consideration of shareholders’ interest, financial health and business development,
the amount of bonus distributed to shareholders shall be no less than 60% of the
distributable earnings for the year. Cash dividends shall not be less than 15% of the
bonus distributed to shareholders.
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B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in
proportion to their share ownership, the legal reserve shall not be used for any other purpose.
The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their
share ownership is permitted, provided that the distribution of the reserve is limited to the
portion in excess of 25% of the Company’s paid-in capital.
C. a) In accordance with the regulations, the Company shall set aside special reserve from the debit
balance on other equity items at the balance sheet date before distributing earnings. When
debit balance on other equity items is reversed subsequently, the reversed amount could be
included in the distributable earnings.
b) The amounts previously set aside by the Company as special reserve on initial application of
IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6,
2012, shall be reversed proportionately when the relevant assets are used, disposed of or
reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the
assets are investment property of land, and reversed over the use period if the assets are
investment property other than land.
D. The appropriations of 2014 and 2013 earnings had been approved by the shareholders during
their meeting on June 10, 2015 and June 10, 2014, respectively. Details are summarized below:
Note A: The shareholders during their meeting had approved to distribute employees’ cash
bonuses of $2,893,928 and directors’ and supervisors’ remuneration of $32,900.
Note B: The shareholders during their meeting had approved to distribute employees’ cash
bonuses of $2,492,438 and directors’ and supervisors’ remuneration of $30,400.
The appropriations of 2014 earnings had been resolved during the shareholders’ meeting.
Therefore, the consolidated financial statements had reflected the dividends payable.
Information about the appropriation of employees’ bonus and directors’ and supervisors’
remuneration by the Company as proposed by the Board of Directors’ and resolved by the
stockholders will be posted in the “Market Observation Post System” at the website of the
Taiwan Stock Exchange.
Dividends Dividends
Amount per share Amount per share
(Note A) (in dollars) (Note B) (in dollars)
Appropriation for legal 2,069,890$ 1,777,620$
reserve
Reversal of special reserve 527,556)( 3,546,949)(
Cash dividends 16,331,540 6.7$ 14,137,751 5.8$
Years ended December 31,
2014 2013
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(22) Non-controlling interest
Decrease in non-controlling interests for certain subsidiaries for the six-month periods ended June 30,
2015 and 2014 is caused by distribution of cash dividends to minority shareholders’ interests.
(23) Operating revenue
(24) Operating cost
2015 2014
At January 1 12,746,960$ 14,226,550$Share attributable to non-controlling
interest:
Profit for the period 811,255 848,247
Currency translation differences 118,291)( 340,671)(Unrealised (loss) gain on valuation of
available-for-sale financial assets 12)( 33Decrease in non-controlling
interest 3,486,244)( 693,783)(
At June 30 9,953,668$ 14,040,376$
Six-month periods ended June 30,
2015 2014
Sales revenue 48,096,423$ 46,939,324$
Service revenue 367,710 284,365
Other operating revenue 268,154 392,599
48,732,287$ 47,616,288$
2015 2014
Sales revenue 90,804,148$ 89,512,772$
Service revenue 604,188 483,696
Other operating revenue 526,936 655,416
91,935,272$ 90,651,884$
Three-month periods ended June 30,
Six-month periods ended June 30,
2015 2014
Cost of sales 35,085,599$ 34,091,166$
Cost of services 312,134 201,432
Other operating costs 180,109 260,830
35,577,842$ 34,553,428$
Three-month periods ended June 30,
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(25) Other income
(26) Other gains and losses
2015 2014
Cost of sales 66,726,567$ 65,356,414$
Cost of services 478,452 314,820
Other operating costs 343,570 480,406
67,548,589$ 66,151,640$
Six-month periods ended June 30,
2015 2014
Interest income 180,386$ 266,822$
Rental income 83,417 82,726
Others 564,522 409,500
828,325$ 759,048$
2015 2014
Interest income 338,637$ 509,694$
Rental income 169,382 165,964
Others 976,445 895,758
1,484,464$ 1,571,416$
Three-month periods ended June 30,
Six-month periods ended June 30,
2015 2014
(Loss) gain on financial assets (liabilities)
at fair value through profit or loss44,891)($ 34,898$
Net currency exchange gain (loss) 72,651 19,946)(
(Loss) gain on disposal of investments 162,971)( 133,741Gain on disposal of property, plant
and equipment 36,603 8,096
Miscellaneous disbursements 141,399)( 154,652)(
240,007)($ 2,137$
2015 2014
Gain on financial assets (liabilities) at fair value
through profit or loss49,683$ 20,596$
Net currency exchange gain (loss) 129,764 4,462)(
(Loss) gain on disposal of investments 240,990)( 119,430Gain (loss) on disposal of property, plant and
equipment 13,056 9,503)(
Miscellaneous disbursements 274,390)( 317,212)(
322,877)($ 191,151)($
Three-month periods ended June 30,
Six-month periods ended June 30,
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(27) Finance costs
(28) Expenses by nature
2015 2014
Interest expense 130,481$ 28,072$
Gain on effective cash flow hedges
reclassified from equity to profit or loss - 2,209
Fair value hedges 612,693)( -
Fair value adjustments for hedged items
of foreign exchange risk 612,693 -
130,481$ 30,281$
2015 2014
Interest expense 187,561$ 65,463$
Loss on effective cash flow hedges
reclassified from equity to profit or loss - 3,474)(
187,561$ 61,989$
Three-month periods ended June 30,
Six-month periods ended June 30,
2015 2014
Changes in inventories of finished goods
and work in process, raw materials and
consumables used 25,832,657$ 26,719,484$
Employee benefit expense 8,668,454 7,334,781
Depreciation charges on property, plant
and equipment 1,665,683 1,481,691
Amortisation charges on intangible assets 368,173 237,034
Transportation expenses 553,837 447,182
Advertising costs 274,541 240,153
Operating lease payments 132,482 62,257
Other expenses 6,493,112 5,110,780
Total cost of sales and operating expenses 43,988,939$ 41,633,362$
Three-month periods ended June 30,
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(29) Employee benefit expense
A. According to the Articles of Incorporation of the Company, when distributing earnings, the
Company shall distribute bonus to the employees and pay remuneration to the directors and
supervisors that account for at least 3% and 1%, respectively, of the total distributed amount.
However, in accordance with the Company Act amended in May 20, 2015, a company shall
distribute employee remuneration, based on the current year's profit condition, in a fixed
2015 2014
Changes in inventories of finished goods 47,791,508$ 48,379,651$
and work in process, raw materials and
consumables used
Employee benefit expense 16,594,253 14,742,773
Depreciation charges on property, plant
and equipment 3,287,402 3,196,794
Amortisation charges on intangible assets 602,226 493,687
Transportation expenses 946,650 804,521
Advertising costs 503,472 436,060
Operating lease payments 199,502 127,575
Other expenses 12,997,549 11,382,399
Total cost of sales and operating expenses 82,922,562$ 79,563,460$
Six-month periods ended June 30,
2015 2014
Wages and salaries 6,673,856$ 5,419,878$
Employees' bonuses 719,915 939,443
Compensation cost of employee stock options - 158
Labor and health insurance fees 729,858 641,501
Pensions costs 124,925 116,182
Other personnel expenses 419,900 217,619
8,668,454$ 7,334,781$
2015 2014
Wages and salaries 12,691,955$ 11,061,408$
Employees' bonuses 1,485,563 1,749,557
Compensation cost of employee stock options - 316
Labor and health insurance fees 1,440,004 1,240,774
Pensions costs 233,208 236,605
Other personnel expenses 743,523 454,113
16,594,253$ 14,742,773$
Three-month periods ended June 30,
Six-month periods ended June 30,
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amount or a proportion of profits. If a company has accumulated deficit, earnings should be
channeled to cover losses. Aforementioned employee remuneration could be paid by cash or
stocks. Specifics of the compensation are to be determined in a board meeting that registers
two-thirds of directors in attendance, and the resolution must receive support from half of
participating members. The resolution should be reported to the shareholders' meeting.
Qualification requirements of employees, including the employees of subsidiaries of the
company meeting certain specific requirements, entitled to receive aforementioned stock or
cash may be specified in the Articles of Incorporation. The Company has not revised its
Articles of Incorporation in accordance with the amended Company Act before the issuance of
these financial statements, thus, the distribution is based on the original Articles of
Incorporation.
B. For the three-month and six-month periods ended June 30, 2015 and 2014, employees’
remuneration (bonus) was accrued at $756,673, $939,443, $1,485,563 and $1,749,557,
respectively; while directors’ and supervisors’ remuneration was accrued at $8,226, $7,600,
$16,452 and $15,654, respectively. The aforementioned amounts were recognized in salary
expenses. The expenses recognised for the year of 2015 and 2014 were accrued based on the
net income for 2015 and 2014 and the percentage specified in the Articles of Incorporation of
the Company, taking into account other factors such as legal reserve.
(30) Income tax
A. Income tax expense
(a) Components of income tax expense:
2015 2014
Current tax:
Current tax on profits for the period 1,380,194$ 1,346,304$
Adjustments in respect of prior years 399,198)( 100,201)(
Total current tax 980,996 1,246,103
Deferred tax:
Origination and reversal of temporary
differences 319,560 27,725)(
Origination and reversal of loss
carryforward 7,578)( -
Total deferred tax 1,292,978$ 1,218,378$
Three-month periods ended June 30,
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(b) The income tax (charge)/credit relating to components of other comprehensive income is asfollows:
B. The status of the Company and its domestic subsidiaries’ assessed and approved income tax
returns are as follows:
2015 2014
Current tax:
Current tax on profits for the period 2,785,702$ 2,371,793$
Adjustments in respect of prior years 601,463)( 100,011)(
Total current tax 2,184,239 2,271,782
Deferred tax:
Origination and reversal of temporary
differences 66,291)( 66,277)(
Origination and reversal of loss
carryforward - -
Total deferred tax 2,117,948$ 2,205,505$
Six-month periods ended June 30,
2015 2014
Fair value gain on available-for-sale
financial assets 20)($ 40$
Currency translation differences 188,801)( 212,912)(
Remeasurement of defined benefit
obligations - -
Cash flow hedges - 2,058
188,821)($ 210,814)($
2015 2014
Fair value gain on available-for-sale
financial assets 31)($ 88$
Currency translation differences 276,881)( 99,503)(
Remeasurement of defined benefit
obligations - -
Cash flow hedges - 3,308)(
276,912)($ 102,723)($
Three-month periods ended June 30,
Six-month periods ended June 30,
Latest year assessed by Tax Authority
The Company, Cyntec, DNIT and Vitor 2012
Delta Capital, NEM, AMT, DelBio, DGL and SYN-TKE 2013
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C. Unappropriated retained earnings:
D. The balance of the imputation tax credit account and the creditable tax rate are as follows:
(31) Earnings per share
June 30, 2015 December 31, 2014 June 30, 2014
Earnings generated in
and before 1997 685,952$ 685,952$ 685,952$
Earnings generated in
and after 1998 22,670,883 32,893,351 21,969,593
23,356,835$ 33,579,303$ 22,655,545$
June 30, 2015 December 31, 2014 June 30, 2014
Imputation tax credit
account balance 496,394$ 496,394$ 622,787$
2014 (Estimated) 2013 (Actual)
Creditable tax ratio 1.49% 2.80%
Weighted average
number of
ordinary shares
Amount outstanding
after tax (shares in thousands)
Basic earnings per share
Profit attributable to ordinary shareholders
of the parent 3,794,616$ 2,437,543
Diluted earnings per share
Profit attributable to ordinary shareholders -$ 2,437,543
of the parent
Assumed conversion of all dilutive
potential ordinary shares:
Employees' bonus - 11,621
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares 3,794,616$ 2,449,164
Three-month period ended June 30, 2015
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Weighted average
number of
ordinary shares Earnings
Amount outstanding per share
after tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent 5,265,494$ 2,437,543 2.16$
Diluted earnings per share
Profit attributable to ordinary shareholders
of the parent 5,265,494$ 2,437,543Assumed conversion of all dilutive
potential ordinary shares:
Employees' bonus - 16,669
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares 5,265,494$ 2,454,212 2.15$
Weighted average
number of
ordinary shares Earnings
Amount outstanding per share
after tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary 7,660,320$ 2,437,543 3.14$
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary -$ 2,437,543
shareholders of the parent
Assumed conversion of all dilutive
potential ordinary shares:
Employees' bonus - 15,112
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares 7,660,320$ 2,452,655 3.12$
Three-month period ended June 30, 2014
Six-month period ended June 30, 2015
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(32) Business combinations
A. Business combination transactions of the Group for the six-month periods ended June 30, 2015
and 2014 are as follows:
(a) On April 8, 2014, the Group acquired 100% share ownership in Vivitek-TW from Luxeon
International Holding Limited for cash of $135,083.
(b)On January 1, 2015, the Group acquired 100% share ownership in Vitor for cash of $79,575.
As of June 30, 2015, $70,075 had been paid.
(c) The Group acquired 100% share ownership in Eltek for a cash consideration of
$15,223,268 (approximately NOK$3.87 billion) on May 1, 2015.
B. Consideration paid for acquisition of the abovementioned subsidiaries and fair value
information of assets acquired and liabilities assumed from the acquisition on the acquisition
date are as follows:
Weighted average
number of
ordinary shares Earnings
Amount outstanding per share
after tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary 9,835,782$ 2,437,543 4.04$
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary 9,835,782$ 2,437,543
shareholders of the parent
Assumed conversion of all dilutive
potential ordinary shares:
Employees' bonus - 18,116
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares 9,835,782$ 2,455,659 4.01$
Six-month period ended June 30, 2014
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C. Starting from the acquisition of share ownership in Vitor and Eltek, the operating revenue and
profit before tax included in the consolidated statements of comprehensive income and
contributed by Vitor and Eltek amounted to $2,893,304 and $174,165, respectively. Had Vitor
and Eltek been consolidated from January 1, 2014, the consolidated statement of
comprehensive income would show operating revenue and profit before income tax as follows:
(33) Supplemental cash flow information
Financing activities with no cash flow effects:
2015 2014
Purchase consideration
Cash 15,302,843$ 135,083$Non-controlling interest’s
proportionate share of the recognised
amounts of acquiree’s identifiable net
assets 79,049 -
15,381,892 135,083
Fair value of the identifiable assets
acquired and liabilities assumed
Cash 1,240,218 134,734
Other current assets 6,675,104 360
Property, plant and equipment 1,039,612 -
Intangible assets 8,212,364 -
Other non-current assets 1,540,952 197
Current liabilities 4,975,545)( 745)(
Non-current liabilities 3,915,507)( -
Total identifiable net assets 9,817,198 134,546
Goodwill 5,564,694$ 537$
Six-month periods ended June 30,
2015 2014
Operating revenue 97,074,867$ 95,560,109$
Profit before income tax 11,633,065 13,303,185
Six-month periods ended June 30,
2015 2014
Cash dividends declared but not yet paid 16,354,638$ 15,015,503$
Six-month periods ended June 30,
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7. RELATED PARTY TRANSACTIONS
(1) Significant transactions and balances with related parties
A. Sales of goods
The sales terms, including prices and collections, were negotiated based on cost, market,
competitors and other factors.
B. Purchases of goods:
The purchase terms, including prices and payments, were negotiated based on cost, market,
competitors and other factors.
2015 2014
Sales of goods:
Associates 1,382,936$ 968,798$
Others 333,703 288,503
1,716,639$ 1,257,301$
2015 2014
Sales of goods:
Associates 2,460,637$ 1,846,180$
Others 629,705 455,969
3,090,342$ 2,302,149$
Three-month periods ended June 30,
Six-month periods ended June 30,
2015 2014
Purchases of goods:
Associates 137,961$ 134,041$
Others 113,780 18,488
251,741$ 152,529$
2015 2014
Purchases of goods:
Associates 263,420$ 331,847$
Others 131,040 21,599
394,460$ 353,446$
Three-month periods ended June 30,
Six-month periods ended June 30,
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C. Period-end balances arising from sales of goods:
The receivables from related parties arise mainly from sales transactions. The receivables are
due 60~90 days after the date of sale. The receivables are unsecured in nature and bear no
interest. There are no provisions held against receivables from related parties.
D. Period-end balances arising from purchases of goods:
The payables to related parties arise mainly from purchase transactions and are due 70 days
after the date of purchase. The payables bear no interest.
E. Period-end balances arising from other transactions:
The above pertain mainly to dividend and advance payments.
(2) Key management compensation
June 30, 2015 December 31, 2014 June 30, 2014
Receivables from related
parties:
Associates 1,314,498$ 985,685$ 890,229$
Others 330,206 274,417 287,289
1,644,704$ 1,260,102$ 1,177,518$
June 30, 2015 December 31, 2014 June 30, 2014
Associates 207,495$ 225,241$ 256,477$
Others 126,788 19,572 12,938
334,283$ 244,813$ 269,415$
Payables to related parties:
June 30, 2015 December 31, 2014 June 30, 2014
Other receivables-related
parties
Associates 20,120$ 40,790$ 24,788$
Others 1,137 2,717 2,884
21,257$ 43,507$ 27,672$
2015 2014
Salaries and other short-term employee
benefits 86,101$ 121,155$
2015 2014
Salaries and other short-term employee
benefits 202,221$ 228,519$
Three-month periods ended June 30,
Six-month periods ended June 30,
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8. PLEDGED ASSETS
The Group’s assets pledged as collateral are as follows:
9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT
COMMITMENTS
(1) Contingencies
None.
(2) Commitments
A. Capital commitments
Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:
B. Operating lease commitments
The future aggregate minimum lease payments under non-cancellable operating leases are as
follows:
10. SIGNIFICANT DISASTER LOSS
None.
June 30, December 31, June 30,
Pledged assets 2015 2014 2014 Pledge purpose
Demand deposits and time
deposits (shown as other
assets - current and
non-current)
184,255$ 3,000$ 5,414$ Collateral for customs
duties and other
guarantee deposits
Time deposits
(shown as other current 143,720 160,769 47,186Performance bonds and
land lease327,975$ 163,769$ 52,600$
Book value
June 30, 2015 December 31, 2014
Property, plant and equipment 473,274$ 571,260$
June 30, 2015 December 31, 2014
Not later than one year 192,119$ 107,460$
Later than one year but not 780,108 178,419
later than five years
Later than five years 284,241 102,221
1,256,468$ 388,100$
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11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
On May 15, 2015, the Board of Directors has resolved for the Company’s subsidiary, DEN, to invest
USD$22 million in the capital increase of Delta America Ltd. (DAL). After the share transfer on July
2, 2015, the Company’s combined shareholding ratio became 50.21%.
12. OTHERS
(1) Capital risk management
The Group’s objectives (including disposal groups held for sale) when managing capital are to
maintain an integrity credit rating and good capital structure to support operating and maximum
stockholders’ equity.
(2) Financial instruments
A. Fair value information of financial instruments
The fair value of financial instruments measured at amortized cost (including notes receivable,
accounts receivable (including related parties), other receivables (including related parties),
short-term loans, notes payable, accounts payable (including related parties) and other
payables) are based on their book value as book value is approximate to fair value. The fair
value of long-term loans (including current portion) is based on book value as their interest
rate is approximate to market interest rate. The fair value information of financial instruments
measured at fair value is provided in Note 12(3).
B. Financial risk management policies
The Group’s activities expose it to a variety of financial risks: market risk (including foreign
exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s
overall risk management programme focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the Group’s financial position and financial
performance. The Group uses derivative financial instruments to hedge certain risk exposures
(see Notes 6(2), 6(5) and 6(15)).
C. Significant financial risks and degrees of financial risks
a) Market risk
Foreign exchange risk
i. The Group operates internationally and is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to the USD, RMB and EUR.
Foreign exchange risk arises from future commercial transactions, recognised assets and
liabilities and net investments in foreign operations.
ii. Management has set up a policy to require group companies to manage their foreign
exchange risk against their functional currency. The group companies are required to
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hedge their entire foreign exchange risk exposure with the Group treasury. To manage
their foreign exchange risk arising from future commercial transactions and recognised
assets and liabilities, entities in the Group use forward foreign exchange contracts,
transacted with Group treasury.
iii. The Group adopts the derivative financial instruments like forward exchange contracts /
forward exchange transactions, etc. to hedge the fair value risk and cash flow risk due to
foreign exchange rate fluctuations. The Group monitors at any time and pre-sets a “stop
loss” amount to limit its foreign exchange risk.
iv. The Group’s businesses involve some non-functional currency operations (the
Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’
functional currency: USD and RMB). The information on assets and liabilities
denominated in foreign currencies whose values would be materially affected by the
exchange rate fluctuations is as follows:
Foreign currency
amount Exchange Book value
(Foreign currency: Functional currency) (in thousands) rate (NTD)
Financial assets
Monetary items
USD:NTD 344,682$ 30.8600 10,636,882$
USD:RMB (Note) 373,424 6.2055 11,523,836
RMB:USD (Note) 911,662 0.1611 4,532,368
BRL:NOK (Note) 110,748 2.5244 1,093,817
EUR:NOK (Note) 202,051 8.8079 6,962,690
GBP:NOK (Note) 53,774 12.3914 2,606,974
USD:NOK (Note) 286,260 7.8877 8,833,969
Non-monetary items
RMB:USD (Note) 7,064,114$ 0.1611 35,158,220$
NTD:USD (Note) 2,133,568 0.0324 2,133,568
USD:NTD 3,486,520 30.8600 107,594,014
THB:NTD 7,096,658 0.9188 6,520,409
THB:USD (Note) 325,414)( 0.0298 298,990)(
Financial liabilities
Monetary items
USD:NTD 277,116$ 30.8600 8,551,794$
USD:RMB (Note) 543,629 6.2055 16,776,365
RMB:USD (Note) 1,376,240 0.1611 6,842,040
June 30, 2015
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Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group
shall consider these items when disclosing the above information. When a subsidiary’s
functional currency is RMB, it shall also consider its USD foreign currency position.
Foreign currency
amount Exchange Book value
(Foreign currency: Functional currency) (in thousands) rate (NTD)
Financial assets
Monetary items
USD : NTD 333,368$ 31.6500 10,551,109$
USD : RMB (Note) 439,811 6.2156 13,941,537
RMB : USD (Note) 900,511 0.1611 4,592,520
Non-monetary items
RMB : USD (Note) 8,990,047$ 0.1611 45,848,339$
NTD : USD (Note) 2,016,062 0.0316 2,016,062
USD : NTD 3,241,478 31.6500 102,592,789
THB : NTD 6,396,665 0.9670 6,185,575
THB : USD (Note) 259,166 0.0306 250,614
Financial liabilities
Monetary items
USD : NTD 303,767$ 31.6500 9,614,220$
USD : RMB (Note) 443,890 6.2156 14,070,834
RMB : USD (Note) 1,474,719 0.1611 7,520,925
December 31, 2014
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Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group
shall consider these items when disclosing the above information. When a subsidiary’s
functional currency is RMB, it shall also consider its USD foreign currency position.
Foreign currency
amount Exchange Book value
(Foreign currency: Functional currency) (in thousands) rate (NTD)
Financial assets
Monetary items
USD : NTD 329,454$ 29.8650 9,839,152$
USD : RMB (Note) 462,023 6.2009 13,798,312
RMB : USD (Note) 913,802 0.1613 4,401,051
Non-monetary items
RMB : USD (Note) 8,963,594$ 0.1613 43,170,463$
NTD : USD (Note) 2,018,155 0.0335 2,018,155
USD : NTD 2,960,262 29.8650 88,408,219
THB : NTD 6,192,837 0.9256 5,732,090
THB : USD (Note) 255,488 0.0310 236,480
Financial liabilities
Monetary items
USD : NTD 315,390$ 29.8650 9,419,133$
USD : RMB (Note) 414,338 6.2009 12,374,191
RMB : USD (Note) 1,272,211 0.1613 6,127,222
June 30, 2014
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v. Please refer to the following table for the details of unrealised exchange gain (loss) arising
from significant foreign exchange variation on the monetary items held by the Group.
Note: These are the subsidiaries’ functional currencies. Certain consolidated entities’
functional currency is not NTD. Therefore, the Group shall consider these items when
disclosing the above information. When a subsidiary’s functional currency is RMB, it
shall also consider its USD foreign currency position.
Note: These are the subsidiaries’ functional currencies. Certain consolidated entities’
functional currency is not NTD. Therefore, the Group shall consider these items when
disclosing the above information. When a subsidiary’s functional currency is RMB, it
shall also consider its USD foreign currency position.
(Foreign currency:Foreign currency
amount Exchange
Functional currency) (in thousands) rate Book value
Financial assetsMonetary items
USD:NTD -$ 30.8600 52,556$
USD:RMB (Note) 2,563 6.2055 12,978RMB:USD (Note) 455)( 0.1613 14,330)(
Financial liabilities
Monetary items
USD:NTD -$ 30.8600 39,568)($
USD:RMB (Note) 6,482)( 6.2055 32,013)(
RMB:USD (Note) 82 0.1613 3,093
Three-month period ended June 30, 2015
Exchange gain (loss)
(Foreign currency:Foreign currency
amount Exchange
Functional currency) (in thousands) rate Book value
Financial assets
Monetary items
USD:NTD -$ 29.8650 109,623)($
USD:RMB (Note) 8,747)( 6.2009 42,672)(
RMB:USD (Note) 2,592 0.1613 78,464
Financial liabilities
Monetary items
USD:NTD -$ 29.8650 94,676$
USD:RMB (Note) 1,487 6.2009 7,487
RMB:USD (Note) 907)( 0.1613 26,550)(
Three-month period ended June 30, 2014Exchange gain (loss)
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Note: These are the subsidiaries’ functional currencies. Certain consolidated entities’
functional currency is not NTD. Therefore, the Group shall consider these items when
disclosing the above information. When a subsidiary’s functional currency is RMB, it
shall also consider its USD foreign currency position.
Note: These are the subsidiaries’ functional currencies. Certain consolidated entities’
functional currency is not NTD. Therefore, the Group shall consider these items when
disclosing the above information. When a subsidiary’s functional currency is RMB, it
shall also consider its USD foreign currency position.
Foreign currency
amount Exchange
(Foreign currency: (in thousands) rate Book value
Functional currency)
Financial assets
Monetary items
USD : NTD -$ 30.8600 11,939$
USD : RMB (Note) 510)( 6.2055 2,536)(
RMB : USD (Note) 215 0.1613 6,634
Financial liabilities
Monetary items
USD : NTD -$ 30.8600 6,857$
USD : RMB (Note) 2,246)( 6.2055 10,623)(
RMB : USD (Note) 1,166)( 0.1613 35,983)(
Exchange gain (loss)
Six-month period ended June 30, 2015
Foreign currency
amount Exchange
(Foreign currency: (in thousands) rate Book value
Functional currency)
Financial assets
Monetary items
USD : NTD -$ 29.8650 31,445)($
USD : RMB (Note) 2,524)( 6.2009 12,158)(
RMB : USD (Note) 844 0.1613 25,206
Financial liabilities
Monetary items
USD : NTD -$ 29.8650 39,487$
USD : RMB (Note) 2,272)( 6.2009 10,944)(
RMB : USD (Note) 1,815)( 0.1613 54,205)(
Six-month period ended June 30, 2014
Exchange gain (loss)
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Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group
shall consider these items when disclosing the above information. When a subsidiary’s
functional currency is RMB, it shall also consider its USD foreign currency position.
Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group
shall consider these items when disclosing the above information. When a subsidiary’s
functional currency is RMB, it shall also consider its USD foreign currency position.
(Foreign currency: Extent of Effect on Effect on
Functional currency) variation profit or loss comprehensive income
Financial assets
Monetary items
USD : NTD 1% 106,369$ -$
USD : RMB (Note) 1% 115,238 -
RMB : USD (Note) 1% 45,374 -
BRL : NOK (Note) 1% 10,938 -
EUR : NOK (Note) 1% 69,627 -
GBP : NOK (Note) 1% 26,070 -
USD : NOK (Note) 1% 88,340 -
Financial liabilities
Monetary items
USD : NTD 1% 85,518$ -
USD : RMB (Note) 1% 167,764 -
RMB : USD (Note) 1% 68,240 -
Six-month period ended June 30, 2015
Sensitivity analysis
(Foreign currency: Extent of Effect on Effect on
Functional currency) variation profit or loss comprehensive income
Financial assets
Monetary items
USD : NTD 1% 98,392$ -$
USD : RMB (Note) 1% 137,983 -
RMB : USD (Note) 1% 44,011 -
Financial liabilities
Monetary items
USD : NTD 1% 94,191$ -
USD : RMB (Note) 1% 123,742 -
RMB : USD (Note) 1% 61,272 -
Six-month period ended June 30, 2014
Sensitivity analysis
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Price risk
The Group is exposed to equity securities price risk because of investments held by the Group
and classified on the consolidated balance sheet either as available-for-sale or at fair value
through profit or loss. To manage its price risk arising from investments in equity securities,
the Group diversifies its portfolio to control this risk.
The Group’s investments in equity securities comprise listed and unlisted stocks. The prices of
equity securities would change due to the change of the future value of investee companies. If
the prices of these equity securities had increased/decreased by 1% with all other variables
held constant, post-tax profit for the six-month periods ended June 30, 2015 and 2014 would
have increased/decreased by $389 and $358, respectively, as a result of gain/loss on equity
securities classified as at fair value through profit or loss. Other components of equity would
have increased/decreased by $67,303 and $75,906 as of June 30, 2015 and 2014, respectively,
as a result of gain/loss on equity securities classified as available-for-sale.
Interest rate risk
i. The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at
variable rates expose the Group to cash flow interest rate risk which is partially offset by
cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose
the Group to fair value interest rate risk. The Group’s borrowings mainly bear variable
interest rate. During the six-month periods ended June 30, 2015 and 2014, the Group’s
borrowings at variable rate were denominated in NTD and USD.
ii. If the interest rate increases by 0.25%, and all other conditions are the same, the impact on
post-tax profit would decrease by $66,336 and $25,710 for the six-month periods ended
June 30, 2015 and 2014, respectively, resulting from the variable rate borrowings.
b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the
clients or counterparties of financial instruments on the contract obligations as described
below:
According to the Group’s credit policy, each local entity in the Group is responsible for
managing and analysing the credit risk for each of their new clients before standard
payment and delivery terms and conditions are offered. Internal risk control assesses
the credit quality of the customers, taking into account their financial position, past
experience and other factors.
Individual risk limits are set based on internal or external ratings in accordance with
limits set by the credit controller. The utilisation of credit limits is regularly monitored.
For banks and financial institutions, only well rated parties are accepted.
Credit risk arises from cash and cash equivalents, derivative financial instruments and
deposits with banks and financial institutions, as well as credit exposures to wholesale
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and retail customers, including outstanding receivables and committed transactions.
ii. The management does not expect any significant losses from non-performance by these
counterparties.
iii. The credit quality information of significant financial assets that are neither past due nor
impaired is described in Note 6(6).
c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated
by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity
requirements to ensure it has sufficient cash to meet operational needs.
ii. The table below analyses the Group’s (including non-current disposal group classified as
held for sale) non-derivative financial liabilities and net-settled or gross-settled derivative
financial liabilities into relevant maturity groupings based on the remaining period at the
balance sheet date to the contractual maturity date for non-derivative financial liabilities
and to the expected maturity date for derivative financial liabilities:
Less than Between 1 Between 2 Over
June 30, 2015 1 year and 2 years and 5 years 5 years
Short-term borrowings 12,172,321$ -$ -$ -$
Notes and accounts payable
(including related parties)31,945,449 - - -
Other payables 37,645,682 - - -
Long-term borrowings
(including current portion)43,359 20,772,635 45,738 -
Less than Between 1 Between 2 Over
December 31, 2014 1 year and 2 years and 5 years 5 years
Short-term borrowings 5,801,298$ -$ -$ -$
Notes and accounts payable
(including related parties) 33,748,983 - - -
Other payables 19,221,347 - - -
Long-term borrowings
(including current portion) 52,111 26,456,375 11,728 -
Non-derivative financial liabilities:
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Derivative financial liabilities:
As of June 30, 2015, December 31, 2014 and June 30, 2014, the derivative financial
liabilities which were operated by the Group are due within 1 year.
iii. The Group does not expect the timing of occurrence of the cash flows estimated through thematurity date analysis will be significantly earlier, nor expect the actual cash flow amountwill be significantly different.
(3) Fair value information
A. Details of the fair value of the Group’s financial assets and financial liabilities not measured at
fair value are provided in Note 12(2)A. Details of the fair value of the Group’s investment
property measured at cost are provided in Note 6(11).
B. The different levels that the inputs to valuation techniques are used to measure fair value of
financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date. A market is regarded as active where a
market in which transactions for the asset or liability take place with sufficient
frequency and volume to provide pricing information on an ongoing basis.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
C. The related information of financial and non-financial instruments measured at fair value by
level on the basis of the nature, characteristics and risks of the assets and liabilities at June 30,
2015, December 31, 2014 and June 30, 2014 is as follows:
Less than Between 1 Between 2 Over
June 30, 2014 1 year and 2 years and 5 years 5 years
Short-term borrowings 5,778,802$ -$ -$ -$
Notes and accounts payable
(including related parties) 30,819,706 - - -
Other payables 33,577,779 - - -
Long-term borrowings
(including current portion) 58,839 6,505,387 63,773 -
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June 30, 2015 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value
measurements
Financial assets at fair value
through profit or loss
Equity securities 38,945$ -$ -$ 38,945$
Forward exchange contracts - 10,884 - 10,884
Convertible bonds 4,242 229,140 - 233,382
Available-for-sale financial
assets
Equity securities 5,592,299 - 1,138,048 6,730,347
5,635,486$ 240,024$ 1,138,048$ 7,013,558$
Liabilities
Recurring fair value
measurements
Financial liabilities at fair
value through profit or loss
Forward exchange contracts -$ 13,948$ -$ 13,948$
December 31, 2014 Level 1 Level 2 Level 3 Total
Assets:
Recurring fair value
measurements
Financial assets at fair value
through profit or loss
Equity securities 25,774$ -$ -$ 25,774$
Forward exchange contracts - 8,047 - 8,047
Convertible bonds 5,805 115,924 - 121,729
Available-for-sale financial
assets
Equity securities 6,373,236 - 1,282,187 7,655,423
6,404,815$ 123,971$ 1,282,187$ 7,810,973$
Liabilities:
Recurring fair value
measurements
Financial liabilities at fair
value through profit or loss
Forward exchange contracts -$ 51,606$ -$ 51,606$
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D. The methods and assumptions that the Group used to measure fair value are as follows:
(a) The instruments that the Group used market quoted prices as their fair values (that is, Level
1) are listed below by characteristics:
(b) Except for financial instruments with active markets, the fair value of other financial
instruments is measured by using valuation techniques that are approved for financial
management.
(c) When assessing non-standard and low-complexity financial instruments, the Group adopts
valuation technique that is widely used by market participants. The inputs used in the
valuation method to measure these financial instruments are normally observable in the
market.
(d) The valuation of derivative financial instruments is based on valuation model widely
accepted by market participants, such as present value techniques and option pricing
models. Forward exchange contracts are usually valued based on the current forward
exchange rate.
June 30, 2014 Level 1 Level 2 Level 3 Total
Assets:
Recurring fair value
measurements
Financial assets at fair value
through profit or loss
Equity securities 35,815$ -$ -$ 35,815$
Forward exchange contracts - 19,722 - 19,722
Convertible bonds 20,430 163,735 28,844 213,009
Available-for-sale financial
assets
Equity securities 6,497,338 - 1,093,307 7,590,645
6,553,583$ 183,457$ 1,122,151$ 7,859,191$
Liabilities:
Recurring fair value
measurements
Financial liabilities at fair
value through profit or loss
Forward exchange contracts -$ 3,652$ -$ 3,652$
Derivative financial liabilities
for hedging - 12,931 - 12,931
-$ 16,583$ -$ 16,583$
Listed shares Convertible (exchangeable) bond
Market quoted price Closing price Closing
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(e) The output of valuation model is an estimated value and the valuation technique may not be
able to capture all relevant factors of the Group’s financial and non-financial instruments.
Therefore, the estimated value derived using valuation model is adjusted accordingly with
additional inputs. In accordance with the Group’s management policies and relevant control
procedures relating to the valuation models used for fair value measurement, management
believes adjustment to valuation is necessary in order to reasonably represent the fair value
of financial and non-financial instruments at the consolidated balance sheet. The inputs and
pricing information used during valuation are carefully assessed and adjusted based on
current market conditions.
(f) The Group takes into account adjustments for credit risks to measure the fair value of
financial and non-financial instruments to reflect credit risk of the counterparty.
E. For the six-month periods ended June 30, 2015 and 2014, there was no transfer between Level
1 and Level 2.
F. The following chart is the movement of Level 3 for the six-month periods ended June 30, 2015
and 2014:
G. As Nien Made Enterprise Co., Ltd. and Crystalvue Medical Corporation became emerging
companies in Taiwan on January 6, 2015 and April 29, 2015, respectively, and as Green Seal
Holding Ltd. became a listed company in Taiwan on January 16, 2014, there was enough
observable market data available. Thus, the Group has transferred the fair value amount from
Level 3 to Level 2 at the end of each month.
Convertible bonds Equity securities Total
At January 1 -$ 1,282,188$ 1,282,188$
Gains and losses recognised
in profit or oss- 14,422)( 14,422)(
Acquired in the period - 168,490 168,490
Transfers out from level 3 - 290,400)( 290,400)(
Net exchange differences - 7,808)( 7,808)(
At June 30 -$ 1,138,048$ 1,138,048$
Convertible bonds Equity securities Total
At January 1 -$ 1,108,688$ 1,108,688$
Acquired in the period 28,844 135,103 163,947
Transfers out from level 3 - 88,992)( 88,992)(
Net exchange differences - 61,493)( 61,493)(
At June 30 28,844$ 1,093,306$ 1,122,150$
2015
2014
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90
H. Investment department is in charge of valuation procedures for fair value measurements being
categorized within Level 3, which is to verify independent fair value of financial instruments.
Such assessment is to ensure the valuation results are reasonable by applying independent
information to make results close to current market conditions and periodical review.
Investment property is valuated regularly by the Group’s financial treasury based on the
valuation methods and assumptions announced by the Financial Supervisory Commission,
Securities and Futures Bureau or through outsourced appraisal performed by the external
appraiser.
The capital department establishes valuation policies, valuation processes and rules for
measuring fair value of financial instruments and ensure compliance with the related
requirements in IFRS. The related valuation results are reported to the management monthly.
The management is responsible for managing and reviewing valuation processes.
I. The following is the qualitative information of significant unobservable inputs and sensitivity
analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair
value measurement:
J. The Group has carefully assessed the valuation models and assumptions used to measure fair
value; therefore, the fair value measurement is reasonable. However, use of different valuation
models or assumptions may result in different measurement. The following is the effect on
profit or loss or on other comprehensive income from financial assets and liabilities
categorized within Level 3 if the inputs used to valuation models have changed:
Fair value at Valuation
Significant
unobservable
Range
(weighted
Relationship of
inputs to fairJune 30, 2015 technique input average) value
Non-derivative
equityUnlisted shares
(including venture
capital shares)
$ 1,138,048 Net asset
value
Not applicable - Not applicable
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91
13. SUPPLEMENTARY DISCLOSURES
(1) Significant transactions information
A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates
and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or
20% of the Company’s paid-in capital: Please refer to table 4.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in
capital or more: Please refer to table 5.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more:
Please refer to table 6.
Favourable Unfavourable Favourable Unfavourablechange change change change
Financial assets
Equity instrument Net asset
value
± 1%-$ -$ 11,380$ 11,380$
Favourable Unfavourable Favourable Unfavourablechange change change change
Financial assets
Equity instrument Net asset
value
± 1%-$ -$ 12,822$ 12,822$
Input Change
Input Change
December 31, 2014
Recognised in Recognised in other
profit or loss comprehensive income
June 30, 2015
Recognised in Recognised in other
profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourablechange change change change
Financial assets
Equity instrument Net asset
value
± 1%-$ -$ 11,222$ 11,222$
Input Change
June 30, 2014
profit or loss comprehensive income
Recognised in Recognised in other
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92
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes
6(2), 6(5), 6(15) and 12(2).
J. Significant inter-company transactions during the reporting periods: Please refer to table 7.
(2) Information on investees
Names, locations and other information of investee companies (not including investees in
Mainland China):Please refer to table 8.
(3) Information on investees
A. Basic information: Please refer to table 9.
B. Significant transactions, either directly or indirectly through a third area, with investee
companies in the Mainland Area: Please refer to table 5 and 6 for significant transactions of
purchases, sales, receivables and payables of investee companies in the Mainland Area, and
transactions between the Company indirectly through investees in a third area, Delta
Electronics International Ltd. (DEIL-Labuan), Delta Electronics Int'l (Singapore) Pte. Ltd.
(DEIL-SG), Delta Networks International Ltd. (DNIL-Labuan) and Cyntec International Ltd.
(CIL-Labuan), with investee companies in the Mainland Area.
14. OPERATING SEGMENT INFORMATION
(1) General information
The Group has determined the reportable segments based on the information which is used to
make strategic decisions by the Board of Directors. The Group considers the business from a
product perspective. The Group’s business is segregated into power electronics business, energy
management business and smart green life business. Breakdown of the revenue from all sources is
as follows:
A. Power electronics business: Embedded Power Supplies, Mobile Power, Industrial and medical
power supplies, Fans and Cooling Management, Core Components of Information and
Communication and other items. Provides global power management and cooling plans and
management.
B. Energy management business: Industrial Automation, Communication Power System,
Uninterruptible Power System and Information Centre, Recharging Equipment for Automotive
Electronics and Electronic Cars, Renewable Energy, and other items. Provides energy
automation plans for factories and buildings.
C. Smart green life business: Network Devices, Conferencing and Visual Imaging System, LED
Lighting Plans, Medical Devices, Innergie Power Consumption Products, Vivitek High
Definition Projector and other items.
Because of the change of product classification, the Group’s reporting business changed. The
prior period information was restated for comparison.
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93
(2) Measurement of segment information
The Group’s segment profit (loss) is measured with the operating profit (loss) before tax, which is
used as a basis for the Group in assessing the performance of the operating segments. The
accounting policies of the operating segments are in agreement with the significant accounting
policies summarized in Note 4.
(3) Segment information
The segment information provided to the chief operating decision-maker for the reportable
segments is as follows:
Note: Segment income is income before eliminating inter-segment transactions.
(4) Reconciliation information for segment profit (loss)
A. The revenue from external parties reported to the chief operating decision-maker is measured
in a manner consistent with that in the statement of comprehensive income.
B. A reconciliation of reportable segments profit (loss) to profit (loss) before tax and discontinued
operations is provided as follows:
Power Energy
electronics management Smart green
business business life business Total
Revenue from external
customers 50,255,497$ 23,136,969$ 17,624,274$ 91,016,740$
Segment income (Note) 6,841,438$ 3,157,865$ 1,515,599$ 11,514,902$
Power Energy
electronics management Smart green
business business life business Total
Revenue from external
customers 54,831,740$ 16,697,632$ 17,043,964$ 88,573,336$
Segment income (Note) 8,690,647$ 2,892,807$ 1,855,425$ 13,438,879$
Six-month period ended June 30, 2015
Six-month period ended June 30, 2014
2015 2014
Reportable segments' profit 11,514,902$ 13,438,879$
Other segments' loss 2,502,192)( 2,350,455)(
Non-operating income and expenses 1,576,813 1,801,110
Profit before tax and discontinued
operations 10,589,523$ 12,889,534$
Six-month periods ended June 30,
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Item Value
1 Cyntec International LimitedCyntec (Suzhou) Co.
Ltd
Other receivables-
related partiesYes $ 308,600 $ 308,600 $ 185,160 0.888626% 2 -
Additional
operating capital - None - $ 2,988,624 $ 2,988,624
1 Cyntec International LimitedCyntec Electronics
(Suzhou) Co., Ltd.
Other receivables-
related partiesYes 1,234,400 1,234,400 925,800 0.888626% 2 -
Additional
operating capital - None - 2,988,624 2,988,624
2 Eltek Power Systems AS Eltek Holding ABOther receivables-
related partiesYes 3,927 3,927 3,707 3.40% 2 -
Additional
operating capital - None - 1,794,377 1,794,377
2 Eltek Power Systems AS Eltek S.r.l.Other receivables-
related partiesYes 20,676 20,676 15,537 3.45% 2 -
Additional
operating capital - None - 1,794,377 1,794,377
2 Eltek Power Systems ASEltek Enerji Sistemleri
Ltd Sirketi
Other receivables-
related partiesYes 98,032 98,032 86,202 3.44% 2 -
Additional
operating capital - None - 1,794,377 1,794,377
2 Eltek Power Systems AS Eltek MEA DMCCOther receivables-
related partiesYes 209,848 209,848 176,567 3.44% 2 -
Additional
operating capital - None - 1,794,377 1,794,377
2 Eltek Power Systems ASEltek Management
Invest AS
Other receivables-
related partiesYes 182,952 182,952 182,952 7.00% 2 -
Additional
operating capital - None - 1,794,377 1,794,377
2 Eltek Power Systems AS Eltek s.r.o.Other receivables-
related partiesYes 411,552 411,552 241,661 3.45% 2 -
Additional
operating capital - None - 1,794,377 1,794,377
2 Eltek Power Systems AS Eltek AsOther receivables-
related partiesYes 305,167 305,167 277,627 3.25% 2 -
Additional
operating capital - None - 1,794,377 1,794,377
2 Eltek Power Systems ASEltek Sistemas de
Energia Ind. Com. SA
Other receivables-
related partiesYes 407,352 407,352 398,005 3.44% 2 -
Additional
operating capital - None - 1,794,377 1,794,377
3 Eltek AS Eltek Power Systems ASOther receivables-
related partiesYes 5,073,999 5,073,999 0 0.00% 2 -
Additional
operating capital - None - 6,124,404 6,124,404
4 Eltek Power Sweden AB Eltek Power Systems ASOther receivables-
related partiesYes 34,225 34,225 33,573 0.00% 2 -
Additional
operating capital - None - 40,177 40,177
5 Eltek Power Ltd Eltek Power Systems ASOther receivables-
related partiesYes 199,625 199,625 132,712 0.30% 2 -
Additional
operating capital - None - 137,722 137,722
General ledger account
Is a
related
party
Delta Electronics Inc.
Loans to others
Six-month period ended June 30, 2015
Table 1 Expressed in thousands of New Taiwan dollars, except as otherwise indicated
Collateral
Limit on
loans granted
to a single
party
Ceiling on total
loans granted Note Interest rate
Nature of
loan
Amount of
transactions
with the
borrower
Reason for short-
term financing
Allowance
for
doubtful
accounts
Maximum
outstanding
balance
during the
six-month
period ended
June 30, 2015
(Note b)
Balance at
June 30, 2015
Actual
amount
drawn down
No.
(Note
a)
Creditor Borrower
Table 1-1
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Item Value
General ledger account
Is a
related
party
Collateral
Limit on
loans granted
to a single
party
Ceiling on total
loans granted Note Interest rate
Nature of
loan
Amount of
transactions
with the
borrower
Reason for short-
term financing
Allowance
for
doubtful
accounts
Maximum
outstanding
balance
during the
six-month
period ended
June 30, 2015
(Note b)
Balance at
June 30, 2015
Actual
amount
drawn down
No.
(Note
a)
Creditor Borrower
6 Eltek Power Oy Eltek Power Systems ASOther receivables-
related partiesYes $ 28,716 $ 28,716 $ 20,581 0.00% 2 -
Additional
operating capital - None - $ 1,981 $ 1,981
7 Eltek Deutschland GmbH Eltek Power Systems ASOther receivables-
related partiesYes 128,990 128,990 71,010 0.00% 2 -
Additional
operating capital - None - 157,981 157,981
7 Eltek Deutschland GmbH E.V.I Electronics Sp.zooOther receivables-
related partiesYes 128,990 128,990 27,568 3.25% 2 -
Additional
operating capital - None - 157,981 157,981
8 Eltek Inc. Eltek Power Systems ASOther receivables-
related partiesYes 1,377,767 1,377,767 728,075 0.00% 2 -
Additional
operating capital - None - 2,078,704 2,078,704
9 Eltek Power France SAS Eltek Power Systems ASOther receivables-
related partiesYes 103,839 103,839 3,896 0.00% 2 -
Additional
operating capital - None - 114,052 114,052
10 Eltek Power Pte Ltd. Eltek Power Systems ASOther receivables-
related partiesYes 938,445 938,445 204,052 0.00% 2 -
Additional
operating capital - None - 1,033,045 1,033,045
11 Eltek Ventures As Eltek Power Systems ASOther receivables-
related partiesYes 279,819 279,819 279,352 0.03% 2 -
Additional
operating capital - None - 282,003 282,003
Note a: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
(1).Number 0 represents the Company.
(2) The investee companies are in order from number 1.
Note b: Maximum outstanding balance during the current period was translated into New Taiwan dollars using the exchange rate at June 30, 2015, which the Company reported to the Securities and Futures Bureau.
Note c:
Note d: Limit on loans granted by the Company to a single party is 10% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on total loans is 20% of the Company’s net assets based on the latest audited or reviewed financial statements.
Note e: Limit on loans granted by subsidiaries to a single party is 40% of the subsidiaries’ net assets based on the latest audited or reviewed financial statements, and limit on total loans is 40% of the subsidiaries’ net assets based on the latest audited or reviewed financial statements.
assets based on the latest audited or reviewed financial statements.
(1) In accordance with the Cyntec International Ltd. Operating Procedures of Fund Lending, when providing short-term financing to other companies or other enterprise, the amount lent to a single recipient shall not exceed 40 percent of the company’s net worth as stated in the
company’s latest financial statements.
(2) In accordance with the Cyntec International Ltd. Operating Procedures of Fund Lending, the limits for total amount of fund lending shall not exceed 40 percent of the company’s net worth as stated in the company’s latest financial statements.
Note f: Limit on loans for financing granted by and to subsidiaries of which the ultimate parent directly or indirectly holds 100% of its voting shares is the lender’s net assets based on the latest audited or reviewed financial statements, and limit on total loans is the lender’s net
Table 1-2
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Company name
Relationship
with the
endorser /
guarantor
1 Eltek Power Systems AS Eltek AS 3 1,823,448$ 138,870$ 138,870$ 138,870$ -$ 0.13% $4,558,621 Y N N
1 Eltek Power Systems AS Eltek Power Pte Ltd. 3 1,823,448 439,472 439,472 439,472 - 0.42% 4,558,621 Y N N
1 Eltek Power Systems AS Eltek Power Sweden AB 3 1,823,448 758,120 758,120 758,120 - 0.72% 4,558,621 Y N N
1 Eltek Power Systems AS Eltek Deutschland
GmbH
3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N
1 Eltek Power Systems AS Eltek Inc. 3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N
1 Eltek Power Systems AS Eltek Industrial Systems
GmbH
3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N
1 Eltek Power Systems AS Eltek Power Ltd. 3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N
1 Eltek Power Systems AS Eltek Power Oy 3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N
1 Eltek Power Systems AS OOO Eltek 3 1,823,448 (Note d) (Note d) (Note d) - (Note d) 4,558,621 Y N N
2 Eltek AS Eltek MEA DMCC 3 1,823,448 60,396 60,396 60,396 - 0.06% 4,558,621 Y N N
2 Eltek AS Eltek Power Sweden AB 3 1,823,448 18,700 18,700 18,700 - 0.02% 4,558,621 Y N N
Note a: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
(1) The Company is ‘0’
(2) The subsidiaries are numbered in order starting from ‘1’.
Note b: In accordance with the Company's“Procedures for Provision of Endorsements and Guarantees,” limit on total endorsements is 40% of the Company's net assets based on the latest audited or reviewed financial statements, limit on endorsements to a single company is 20% of the Company's net assets based on the latest audited or reviewed financial statements. Limit on total endorsements granted by the Company and subsidiaries is 50% of the Company's net assets based on the latest audited or reviewed financial
statements, limit on total endorsements to a single party is 30% of the Company's net assets based on the latest audited or reviewed financial statements.
Note c: In accordance with Eltek's “Procedures for Provision of Endorsements and Guarantees,” limit on total endorsements is 5% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on endorsements to a single party is 2%
of the Company’s net assets based on the latest audited or reviewed financial statements.
Note d: Eltek Power Systems AS provides endorsements to Eltek Power Sweden AB, Eltek Power Oy, OOO Eltek, Eltek Power Ltd., Eltek Inc., Eltek Industrial Systems GmbH and Eltek Deutschland GmbH as a whole and the limit cannot be divided. Thus, endorsement
amount is disclosed collectively.
Delta Electronics Inc.
Provision of endorsements and guarantees to others
Six-month period ended June 30, 2015
Table 2 Expressed in thousands of New Taiwan dollars, except as otherwise indicated
Provision of
endorsements
/ guarantees to
the party in
Mainland
China
Note
Amount of
endorsements
/ guarantees
secured with
collateral
Ratio of
accumulated
endorsement /
guarantee amount to
net asset value of
the endorser /
guarantor company
Ceiling on total
amount of
endorsements /
guarantees
provided
Provision of
endorsements /
guarantees by
parent
company to
subsidiary
Provision of
endorsements /
guarantees by
subsidiary to
parent company
Outstanding
endorsement /
guarantee amount
at June 30, 2015
Actual
amount drawn
down
Number
(Note a)Endorser / guarantor
Party being endorsed/guaranteed
Limit on
endorsements /
guarantees provided
for a single party
Maximum
outstanding
endorsement /
guarantee amount
as of June 30,
2015
Table 2-1
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Number of shares Book value Owner ship(%) Fair value
Delta Electronics Inc. Dynapack International Technology
Corporation common stock
None Available-for-sale financial assets 1,925,459 125,925$ 1.27 125,925$ -
Delta Electronics Inc. Neo Solar Power Corp. common stock None Available-for-sale financial assets 161,590,296 3,870,088 18.87 3,870,088 -
Delta Electronics Inc. Delta America Ltd. Preferred shares None Financial assets carried at cost-non-current 2,100,000 103,065 Preferred shares 103,065 -
Delta Electronics Inc. Others None 457,343 457,343 -
Delta International Holding Solarflare Communications, Inc. Preferred
shares
None Available-for-sale financial assets 9,547,235 294,628 4.10 294,628 -
Delta International Holding Mentis Technology, Inc. (Formerly: Mentis
Technology, LLC), etc.
None 93,648 93,648 -
Cyntec Co., Ltd. SUSUMU Co., Ltd., stock None Financial assets carried at cost-non-current 200,000 104,081 11.53 104,081 -
Cyntec Co., Ltd. LUXTERA. INC. stock None Financial assets carried at cost-non-current 52,056,222 313,220 3.60 313,220 -
Delta Electronics Capital Company Binhai Investment Company Limited
convertible bonds
None Financial assets at fair value through
profit or loss-non-current
119,218 119,218 -
Delta Electronics Capital Company SynCardia Systems, Inc. convertible bonds None Financial assets at fair value through
profit or loss-non-current
109,922 109,922 -
Delta Electronics Capital Company Tong Hsing Electronic Industries, Ltd.
Common stock
None Available-for-sale financial assets 1,769,000 154,080 1.09 154,080 -
Delta Electronics Capital Company Hu Lane Associate Inc. common stock None Available-for-sale financial assets 756,397 104,383 0.78 104,383 -
Delta Electronics Capital Company Nien Made Enterprise Co., Ltd. common
stock
None Available-for-sale financial assets 1,987,890 328,360 0.87 328,360 -
Delta Electronics Capital Company Global Wafers Co., Ltd. common stock None Available-for-sale financial assets 1,301,300 115,074 0.37 115,074 -
Delta Electronics Capital Company SynCardia Systems, Inc. preferred shares None Available-for-sale financial assets 2,338,130 102,388 6.65 102,388 -
Delta Electronics Capital Company Candmark Electroptics Co.,Ltd. common
stock, etc.
None 1,328,109 1,328,109 -
Deltronics (Netherlands) B.V. Delta America Ltd. None Financial assets carried at cost-non-current 350,000 30,351 2.77 30,351 -
NoteSecurities held by Marketable securitiesRelationship with the
securities issuerGeneral ledger account
As of June 30, 2015
Delta Electronics Inc.Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
Six-month period ended June 30, 2015
Table 3 Expressed in thousands of New Taiwan dollars, except as otherwise indicated
Table 3-1
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Number of
sharesAmount Number of shares Amount
Number of
sharesSelling price Book value
Gain (loss)
on disposal
Number of
sharesAmount
$ 199,365
(Note a)
614,846
(Note b)
Deltronics (Netherlands)
B.V.
Eltek Power Systems AS - - 15,345,393
(Note c)
Delta International Holding Deltronics (Netherlands) B.V. Deltronics
(Netherlands) B.V.
Affiliated
enterprise
- - 18,385
(Note d)
Note a: The amount is the book value of financial assets added by the valuation measured using fair value.
Note b: The Company increased investment by $708,379 in Deltronics (Netherlands) B.V. in June 2015 which includes adjustments in profit (loss) and net value of associates recognised by the Company.
Note c: Deltronics (Netherlands) B.V. increased investment by $15,223,268 in Eltek Power Systems AS in April 2015, which includes recognition of adjustments in profit (loss) and net value of associates.
Note d: Delta International Holding Ltd. increased investment by $15,430,000 in Deltronics (Netherlands) B.V. in April 2015. Deltronics (Netherlands) B.V. decreased capital in June 2015, which includes recognition of profit (loss) associates of $18,385.
- 260,416,667 18,385Investments
accounted for under
the equity method
260,416,667 - -
Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital
Six-month period ended June 30, 2015
Table 4
Delta Electronics Inc.
Expressed in thousands of New Taiwan dollars, except as otherwise indicated
Addition Disposal Balance as at June 30, 2015
Investor Marketable security General ledger
account
CounterpartyRelationship
with the
investor
Balance as at January 1,
2015
5,013,459 $ 369,492 3,088,000Delta Electronics Inc. Dynapack International
Technology Corporation
Available-for-sale
financial assets
Stock Exchange
Market
None $ 214,158 $ 442,932 ($ 228,774) 1,925,459 $ 125,925
Delta Electronics Inc. Deltronics (Netherlands) B.V. Investments
accounted for under
the equity method
Deltronics
(Netherlands) B.V.
Subsidiary -
-
25,674,091 951,200
329,205,923 15,345,393 -Investments
accounted for under
the equity method
329,205,923 -
- 4,765,000 336,354 20,909,091 -
NoneAcquired in open
market
Table 4-1
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Table 5
Purchases
(sales)
(Note a)Amount
Percentage of
total purchases
(sales)
Credit terms Unit price Credit terms Balance
Percentage of
total
notes/accounts
receivable
(payable)
Delta Electronics Inc. DEI Logistics (USA) Corp. Affiliated
enterpriseSales 157,403$ 0.88 75 days - - 107,449$ 1.45
Delta Electronics Inc. Delta Greentech (China) Co., Ltd.Affiliated
enterpriseSales 116,830 0.66 75 days - - 36,763 0.50
Delta Electronics Inc. Cyntec Electronics (Suzhou) Co., Ltd.Affiliated
enterpriseSales 165,292 0.93 75 days - - 96,095 1.30
Delta Electronics Inc. Delta Electronics Int'l (Singapore) Pte. Ltd. Subsidiary Sales 4,779,971 26.83 75 days - - 1,214,853 16.42
Delta Electronics Inc. Delta Energy Systems (Singapore) Pte. Ltd. Associate Sales 133,906 0.75 75 days - - 71,271 0.96
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Thailand) Public Company Limited Associate Purchases 140,697 0.16 75 days - - 73,142 0.22
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Products CorporationRelated party
in substancePurchases 129,904 0.15 75 days - - 113,907 0.34
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics International Ltd.Affiliated
enterpriseSales 322,468 0.32 75 days - - 52,385 0.12
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Dongguan) Co., Ltd.Affiliated
enterpriseSales 3,320,935 3.31 75 days - - 1,266,821 2.85
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Power (Dongguan) Co., Ltd.Affiliated
enterpriseSales 8,182,793 8.15 75 days - - 3,590,420 8.07
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Jiangsu) Ltd.Affiliated
enterpriseSales 7,883,491 7.86 75 days - - 1,563,620 3.51
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Components (Wujiang) Ltd.Affiliated
enterpriseSales 4,218,198 4.20 75 days - - 741,160 1.66
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Video Display System (Wujiang) Ltd.Affiliated
enterpriseSales 2,145,605 2.14 75 days - - 566,299 1.27
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Chenzhou) Co., Ltd.Affiliated
enterpriseSales 753,914 0.75 75 days - - 432,531 0.97
Delta Electronics Int'l (Singapore) Pte. Ltd. Chenzhou Delta Technology Co. Ltd.Affiliated
enterpriseSales 239,498 0.24 75 days - - 123,693 0.28
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Wuhu) Co., Ltd.Affiliated
enterpriseSales 1,560,564 1.56 75 days - - 347,003 0.78
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Japan), Inc.Affiliated
enterpriseSales 927,944 0.92 75 days - - 435,980 0.98
Expressed in thousands of New Taiwan dollars, except as otherwise indicated
NotePurchaser/seller Counterparty
Relationship
with the
counterparty
Transaction
Differences in transaction
term compared to third
party transactions
Notes / accounts receivable
(payable)
Delta Electronics Inc.
Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more
Six-month period ended June 30, 2015
Table 5-1
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Purchases
(sales)
(Note a)Amount
Percentage of
total purchases
(sales)
Credit terms Unit price Credit terms Balance
Percentage of
total
notes/accounts
receivable
(payable)
NotePurchaser/seller Counterparty
Relationship
with the
counterparty
Transaction
Differences in transaction
term compared to third
party transactions
Notes / accounts receivable
(payable)
Delta Electronics Int'l (Singapore) Pte. Ltd. DEI Logistics (USA) Corp.Affiliated
enterpriseSales 8,817,966$ 8.79 75 days - - 4,798,194$ 10.78
Delta Electronics Int'l (Singapore) Pte. Ltd. Vivitek CorporationAffiliated
enterpriseSales 275,110 0.27 75 days - - 158,125 0.36
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks, Inc. (Taiwan)Affiliated
enterpriseSales 377,851 0.38 75 days - - 231,068 0.52
Delta Electronics Int'l (Singapore) Pte. Ltd. DNI Logistics (USA) Co.Affiliated
enterpriseSales 5,861,340 5.84 75 days - - 3,578,520 8.04
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks (Dongguan) Ltd.Affiliated
enterpriseSales 8,293,772 8.26 75 days - - 3,319,328 7.46
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Inc.
Ultimate
parent
companySales 9,907,151 9.87 75 days - - 7,303,809 16.41
Delta Electronics Int'l (Singapore) Pte. Ltd. Deltronics (Netherlands) B.V.Affiliated
enterpriseSales 689,691 0.69 75 days - - 247,210 0.56
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Energy Systems (Switzerland) AG Associate Sales 432,948 0.43 75 days - - 260,328 0.58
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Thailand) Public Company Limited Associate Sales 124,982 0.12 75 days - - 64,427 0.14
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Power Solutions (India) Pvt Ltd. Associate Sales 228,459 0.23 75 days - - 148,506 0.33
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Greentech (USA) Corporation Associate Sales 283,752 0.28 75 days - - 137,137 0.31
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta India Electronics Pvt. Ltd. Associate Sales 366,172 0.36 75 days - - 128,397 0.29
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Slovakia) s.r.o. Associate Sales 212,715 0.21 75 days - - 64,830 0.15
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Energy Systems (Australia) PTY.LTD. Associate Sales 124,959 0.12 75 days - - 68,219 0.15
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Products Corporation Related party
in substanceSales 614,830 0.61 75 days - - 319,716 0.72
Delta Electronics Int'l (Singapore) Pte. Ltd. Digital Projection Ltd Associate Sales 262,107 0.26 75 days - - 159,021 0.36
Delta Networks (Dongguan) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 9,595,522 0.86 75 days - - 3,525,504 0.92
Delta Networks International Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 727,736 0.98 75 days - - - -
Delta Networks, Inc. (Taiwan) Delta Electronics Inc.Affiliated
enterpriseSales 564,950 0.27 75 days - - 85,900 0.13
Delta Networks, Inc. (Taiwan) DNI Logistics (USA) Corp.Affiliated
enterpriseSales 583,956 0.38 75 days - - 365,182 0.57
Table 5-2
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Purchases
(sales)
(Note a)Amount
Percentage of
total purchases
(sales)
Credit terms Unit price Credit terms Balance
Percentage of
total
notes/accounts
receivable
(payable)
NotePurchaser/seller Counterparty
Relationship
with the
counterparty
Transaction
Differences in transaction
term compared to third
party transactions
Notes / accounts receivable
(payable)
Delta Electronics (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd.Affiliated
enterpriseSales 4,264,407$ 79.50 75 days - - 1,956,107$ 75.01
Delta Electronics (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated
enterpriseSales 354,752 6.61 75 days - - 244,545 9.38
Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 10,295,543 91.57 75 days - - 4,841,958 89.71
Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated
enterpriseSales 707,079 6.29 75 days - - 451,176 8.36
Delta Electronics Power (Dongguan) Co., Ltd. Delta Networks (Dongguan) Ltd.Affiliated
enterpriseSales 210,065 1.87 75 days - - 88,173 1.63
Delta Electronics (Jiangsu) Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated
enterpriseSales 2,688,357 14.34 75 days - - 2,005,613 0.40
Delta Electronics (Jiangsu) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 15,956,761 85.13 75 days - - 2,987,699 0.59
Delta Electronics Components (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated
enterpriseSales 2,844,798 32.56 75 days - - 2,116,465 64.37
Delta Electronics Components (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 5,768,010 66.02 75 days - - 1,062,595 32.32
Delta Video Display System (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd.Affiliated
enterpriseSales 985,880 28.68 75 days - - 634,678 65.43
Delta Video Display System (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 2,394,088 69.64 75 days - - 317,682 32.75
Delta Electronics (Wuhu) Co., Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 3,505,731 100.00 75 days - - 1,101,176 100.00
Wuhu Delta Technology Co., Ltd. Delta Electronics (Wuhu) Co., Ltd.Affiliated
enterpriseSales 161,992 65.96 75 days - - 59,867 69.30
Delta Electronics (Chenzhou) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 2,712,921 100.00 75 days - - 796,779 100.00
Chenzhou Delta Technology Co. Ltd. Delta Electronics Power (Dongguan) Co., Ltd.Affiliated
enterpriseSales 389,895 25.27 75 days - - 233,013 29.19
Chenzhou Delta Technology Co. Ltd. Delta Electronics (Chenzhou) Co., Ltd.Affiliated
enterpriseSales 1,080,089 70.00 75 days - - 546,693 68.49
Delta Electronics (Shanghai) Co., Ltd. Delta Greentech (China) Co., Ltd.Affiliated
enterpriseSales 4,907,744 54.06 75 days - - 3,539,466 58.35
Delta Electronics (Shanghai) Co., Ltd. Delta Electronics Components (Wujiang) Ltd.Affiliated
enterpriseSales 223,562 2.46 75 days - - 38,708 0.64
Delta Electronics (Shanghai) Co., Ltd. Delta Electronics Power (Dongguan) Co., Ltd.Affiliated
enterpriseSales 147,570 1.63 75 days - - 20,560 0.34
PreOptix (Jiang Su) Co. Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd.Affiliated
enterpriseSales 220,864 97.56 75 days - - 31,312 99.86
Delta Electronics (Japan) Inc. Delta Electronics Int'l (Singapore) Pte. Ltd.Affiliated
enterpriseSales 240,670 3.73 75 days - - 135,393 26.96
Table 5-3
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Purchases
(sales)
(Note a)Amount
Percentage of
total purchases
(sales)
Credit terms Unit price Credit terms Balance
Percentage of
total
notes/accounts
receivable
(payable)
NotePurchaser/seller Counterparty
Relationship
with the
counterparty
Transaction
Differences in transaction
term compared to third
party transactions
Notes / accounts receivable
(payable)
Cyntec Co., Ltd. Cyntec International LimitedAffiliated
enterpriseSales 957,810$ 54.83 (Note b) (Note b) (Note b) 310,035$ 48.27
Cyntec (Suzhou) Co. Ltd Cyntec International LimitedAffiliated
enterpriseSales 1,265,210 79.70 (Note c) (Note c) (Note c) 349,416 31.13
Cyntec Electronics (Suzhou) Co., Ltd. Cyntec International LimitedAffiliated
enterpriseSales 2,495,437 100.00 (Note c) (Note c) (Note c) 1,021,629 99.96
Cyntec International Limited Cyntec Co., Ltd.Affiliated
enterpriseSales 391,357 6.02 (Note c) (Note c) (Note c) 141,039 3.76
Cyntec International Limited Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated
enterpriseSales 274,873 4.23 75 days - - 133,243 3.55
Note a: Including the service income in excess of $100,000.
Note c: Selling prices based on materials cost plus administration fees and related costs. The credit term to related parties is 60~90 days, while 30~120 days for the third parties.
Note b: Selling price is based on materials cost plus administration fees and related costs. The collection term to related parties is 60~90 days after delivery and to third parties is receipt in advance or 30~120 days after delivery.
Table 5-4
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Table 6
Amount Action taken
Delta Electronics Inc. DEI Logistics (USA) Corp. Subsidiary 107,449$ 0.34 -$ - 2,997$ $ -
Delta Electronics Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. Subsidiary 1,214,853 4.74 - - 922,216 -
Delta Electronics Inc. Allied Material Technology Corp. Subsidiary 598,299 - - - 711 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Dongguan) Co., Ltd. Affiliated enterprise 1,266,821 4.26 - - 185,160 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. Affiliated enterprise 3,590,420 3.80 - - 1,373,270 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Jiangsu) Ltd. Affiliated enterprise 1,563,620 9.68 - - 1,563,620 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Components (Wujiang) Ltd. Affiliated enterprise 741,160 9.96 - - 741,160 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Video Display System (Wujiang) Ltd. Affiliated enterprise 566,299 6.10 - - 348,322 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Chenzhou) Co., Ltd. Affiliated enterprise 432,531 3.24 - - 124,983 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Chenzhou Delta Technology Co. Ltd. Affiliated enterprise 123,693 3.75 - - 94,740 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Wuhu) Co., Ltd. Affiliated enterprise 347,003 7.04 - - 185,160 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Japan), Inc. Affiliated enterprise 435,980 3.72 - - 50,644 -
Delta Electronics Int'l (Singapore) Pte. Ltd. DEI Logistics (USA) Corp. Affiliated enterprise 4,798,194 4.68 227,405 - 1,208,013 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Vivitek Corporation Affiliated enterprise 158,125 3.96 53,603 - 25,992 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks, Inc. (Taiwan) Affiliated enterprise 231,068 5.95 - - 109,534 -
Delta Electronics Int'l (Singapore) Pte. Ltd. DNI Logistics (USA) Co. Affiliated enterprise 3,578,520 6.48 570,767 - 471,486 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks (Dongguan) Ltd. Affiliated enterprise 3,319,328 9.64 - - 1,043,068 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Inc. Ultimate parent company 7,303,809 2.58 9,198 - 1,087,024 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Deltronics (Netherlands) B.V. Affiliated enterprise 247,210 5.85 - - - -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Energy Systems (Switzerland) AG Associate 260,328 5.20 - - 122,531 -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Power Solutions (India) Pvt Ltd. Associate 148,506 4.51 - - - -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Greentech (USA) Corporation Associate 137,137 3.67 - - - -
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta India Electronics Pvt. Ltd. Associate 128,397 5.74 - - - -
Amount collected
subsequent to the balance
date (Note b)
Allowance for
doubtful accountsCreditor Counterparty
Relationship with the
counterparty Balance as at June 30, 2015 (Note a)Turnover rate
Overdue receivables
Delta Electronics Inc.
Receivables from related parties reaching $100 million or 20% of paid-in capital or more
June 30, 2015
Expressed in thousands of New Taiwan dollars, except as otherwise indicated
Table 6-1
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Amount Action taken
Amount collected
subsequent to the balance
date (Note b)
Allowance for
doubtful accountsCreditor Counterparty
Relationship with the
counterparty Balance as at June 30, 2015 (Note a)Turnover rate
Overdue receivables
Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Products Corporation Related party
in substance
319,716$ 4.17 -$ - $ 139 $ -
Delta Electronics Int'l (Singapore) Pte. Ltd. Digital Projection Ltd. Associate 159,021 2.95 - - - -
Delta Networks (Dongguan) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 3,525,504 5.44 - - 634,729 -
Delta Networks, Inc. (Taiwan) Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 100,443 - - - 79,550 -
Delta Networks, Inc. (Taiwan) DNI Logistics (USA) Corp. Affiliated enterprise 365,182 3.24 - - 8,021 -
Delta Electronics (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 1,956,107 4.18 - - 317,444 -
Delta Electronics (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 244,545 3.06 - - 77,192 -
Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 4,841,958 4.17 - - 1,736,487 -
Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 451,176 3.12 - - 28,159 -
Delta Electronics (Jiangsu) Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 2,005,613 3.19 - - 558,976 -
Delta Electronics (Jiangsu) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 2,987,699 10.23 - - 2,865,317 -
Delta Electronics Components (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 2,116,465 3.65 - - 762,344 -
Delta Electronics Components (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 1,062,595 11.20 - - 1,008,455 -
Delta Electro-Optics (Wujiang) Ltd. Delta Electronics Components (Wujiang) Ltd. Affiliated enterprise 1,037,025 - - - - -
Delta Video Display System (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. Affiliated enterprise 634,678 3.00 - - 204,653 -
Delta Video Display System (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 317,682 11.26 - - 316,818 -
Delta Electronics (Wuhu) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 1,101,176 5.92 - - 525,542 -
Delta Electronics (Chenzhou) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 796,779 6.26 - - 476,140 -
Chenzhou Delta Technology Co. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. Affiliated enterprise 233,013 3.07 - - - -
Chenzhou Delta Technology Co. Ltd. Delta Electronics (Chenzhou) Co., Ltd. Affiliated enterprise 546,693 3.75 - - 126,738 -
Delta Electronics (Shanghai) Co., Ltd. Delta Greentech (China) Co., Ltd. Affiliated enterprise 3,539,466 2.98 - - 1,178,266 -
Delta Electronics (Japan) Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 135,393 3.49 - - 42,310 -
Cyntec Co., Ltd. Cyntec International Limited Affiliated enterprise 310,035 7.53 - - 109,531 -
Cyntec (Suzhou) Co. Ltd Cyntec International Limited Affiliated enterprise 349,416 5.88 - - 240,562 -
Cyntec Electronics (Suzhou) Co., Ltd. Cyntec International Limited Affiliated enterprise 1,021,629 5.59 - - 456,052 -
Cyntec International Limited Cyntec Co., Ltd. Affiliated enterprise 141,039 5.63 - - - -
Cyntec International Limited Delta Electronics Int’l (Singapore) Pte. Ltd. Affiliated enterprise 133,243 4.00 - - 46,604 -
Cyntec International Limited Cyntec (Suzhou) Co. Ltd Affiliated enterprise 185,160 - - - - -
Table 6-2
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Amount Action taken
Amount collected
subsequent to the balance
date (Note b)
Allowance for
doubtful accountsCreditor Counterparty
Relationship with the
counterparty Balance as at June 30, 2015 (Note a)Turnover rate
Overdue receivables
Cyntec International Limited Cyntec Electronics (Suzhou) Co., Ltd. Affiliated enterprise $ 925,800 - -$ - $ - $ -
Eltek Power Systems AS Eltek MEA DMCC Affiliated enterprise 176,567 - - - - -
Eltek Power Systems AS Eltek Management Invest AS Affiliated enterprise 182,952 - - - - -
Eltek Power Systems AS Eltek s.r.o. Affiliated enterprise 241,661 - - - - -
Eltek Power Systems AS Eltek As Affiliated enterprise 277,627 - - - - -
Eltek Power Systems AS Eltek Sistemas de Energia Ind. Com. SA Affiliated enterprise 398,005 - - - - -
Eltek Power Ltd Eltek Power Systems AS Affiliated enterprise 132,712 - - - - -
Eltek Inc. Eltek Power Systems AS Affiliated enterprise 728,075 - - - - -
Eltek Power Pte Ltd. Eltek Power Systems AS Affiliated enterprise 204,052 - - - - -
Eltek Ventures As Eltek Power Systems AS Affiliated enterprise 279,352 - - - - -
Note a: Including other receivable in excess of $100,000.
Note b: The amount represents collections subsequent to June 30, 2015 up to July 28, 2015.
Table 6-3
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General ledger accountAmount
Transaction
terms
Percentage of consolidated total
operating revenue or total assets
(Note c)
0 Delta Electronics Inc. DEI Logistics (USA) Corp. 1 Sales 157,403$ (Note d) 0.17
0 Delta Electronics Inc. Delta Greentech (China) Co., Ltd. 1 Sales 116,830 (Note d) 0.13
0 Delta Electronics Inc. Cyntec Electronics (Suzhou) Co., Ltd. 1 Sales 165,292 (Note d) 0.18
0 Delta Electronics Inc. Delta Electronics Int'l (Singapore) Pte. Ltd. 1 Sales 4,779,971 (Note d) 5.20
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics International Ltd. 3 Sales 322,468 (Note d) 0.35
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Dongguan) Co., Ltd. 3 Sales 3,320,935 (Note d) 3.61
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. 3 Sales 8,182,793 (Note d) 8.90
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Jiangsu) Ltd. 3 Sales 7,883,491 (Note d) 8.58
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Components (Wujiang) Ltd. 3 Sales 4,218,198 (Note d) 4.59
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Video Display System (Wujiang) Ltd. 3 Sales 2,145,605 (Note d) 2.33
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Chenzhou) Co., Ltd. 3 Sales 753,914 (Note e) 0.82
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Chenzhou Delta Technology Co. Ltd. 3 Sales 239,498 (Note d) 0.26
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Wuhu) Co., Ltd. 3 Sales 1,560,564 (Note d) 1.70
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Japan), Inc. 3 Sales 927,944 (Note d) 1.01
1 Delta Electronics Int'l (Singapore) Pte. Ltd. DEI Logistics (USA) Corp. 3 Sales 8,817,966 (Note d) 9.59
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Vivitek Corporation 3 Sales 275,110 (Note d) 0.30
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks, Inc. (Taiwan) 3 Sales 377,851 (Note d) 0.41
1 Delta Electronics Int'l (Singapore) Pte. Ltd. DNI Logistics (USA) Corp. 3 Sales 5,861,340 (Note d) 6.38
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks (Dongguan) Ltd. 3 Sales 8,293,772 (Note d) 9.02
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Inc. 2 Sales 9,907,151 (Note d) 10.78
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Deltronics (Netherlands) B.V. 3 Sales 689,691 (Note d) 0.75
2 Delta Networks (Dongguan) Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd. 3 Sales 9,595,522 (Note d) 10.44
3 Delta Networks International Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 727,736 (Note d) 0.79
Transaction
Delta Electronics Inc.
Significant inter-company transactions during the reporting periods
Six-month period ended June 30, 2015
Table 7
Number
(Note a) Company name Counterparty
Relationship
(Note b)
Expressed in thousands of New Taiwan dollars, except as otherwise indicated
Table 7-1
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General ledger accountAmount
Transaction
terms
Percentage of consolidated total
operating revenue or total assets
(Note c)
TransactionNumber
(Note a) Company name Counterparty
Relationship
(Note b)
4 Delta Networks, Inc. (Taiwan) Delta Electronics Inc. 3 Sales 564,950$ (Note d) 0.61
4 Delta Networks, Inc. (Taiwan) DNI Logistics (USA) Corp. 3 Sales 583,956 (Note d) 0.64
5 Delta Electronics (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 4,264,407 (Note d) 4.64
5 Delta Electronics (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 354,752 (Note d) 0.39
6 Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 10,295,543 (Note d) 11.20
6 Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 707,079 (Note d) 0.77
6 Delta Electronics Power (Dongguan) Co., Ltd. Delta Networks (Dongguan) Ltd. 3 Sales 210,065 (Note d) 0.23
7 Delta Electronics (Jiangsu) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 2,688,357 (Note d) 2.92
7 Delta Electronics (Jiangsu) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 15,956,761 (Note d) 17.36
8 Delta Electronics Components (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 2,844,798 (Note d) 3.09
8 Delta Electronics Components (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 5,768,010 (Note d) 6.27
9 Delta Video Display System (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Sales 985,880 (Note d) 1.07
9 Delta Video Display System (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 2,394,088 (Note d) 2.60
10 Delta Electronics (Wuhu) Co., Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd. 3 Sales 3,505,731 (Note d) 3.81
11 Wuhu Delta Technology Co., Ltd. Delta Electronics (Wuhu) Co., Ltd. 3 Sales 161,992 (Note d) 0.18
12 Delta Electronics (Chenzhou) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 2,712,921 (Note d) 2.95
13 Chenzhou Delta Technology Co. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. 3 Sales 389,895 (Note d) 0.42
13 Chenzhou Delta Technology Co. Ltd. Delta Electronics (Chenzhou) Co., Ltd. 3 Sales 1,080,089 (Note d) 1.17
14 Delta Electronics (Shanghai) Co., Ltd. Delta Greentech (China) Co., Ltd. 3 Sales 4,907,744 (Note d) 5.34
15 PreOptix (Jiang Su) Co. Ltd. Delta Electronics Int'l (Singapore) Pte. Ltd. 3 Sales 220,864 (Note d) 0.24
16 Delta Electronics (Japan) Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 240,670 (Note d) 0.26
Table 7-2
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General ledger accountAmount
Transaction
terms
Percentage of consolidated total
operating revenue or total assets
(Note c)
TransactionNumber
(Note a) Company name Counterparty
Relationship
(Note b)
17 Cyntec Co., Ltd. Cyntec International Limited 3 Sales 957,810$ (Note e) 1.04
18 Cyntec (Suzhou) Co. Ltd. Cyntec International Limited 3 Sales 1,265,210 (Note e) 1.38
19 Cyntec Electronics (Suzhou) Co., Ltd. Cyntec International Limited 3 Sales 2,495,437 (Note e) 2.71
20 Cyntec International Limited Cyntec Co., Ltd. 3 Sales 391,357 (Note e) 0.43
20 Cyntec International Limited Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Sales 274,941 (Note d) 0.30
0 Delta Electronics Inc. DEI Logistics (USA) Corp. 1 Accounts receivable 107,449 (Note d) 0.05
0 Delta Electronics Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. 1 Accounts receivable and
other accounts receivable
1,214,853 (Note d) 0.54
0 Delta Electronics Inc. Allied Material Technology Corp. 1 Accounts receivable 598,299 (Note d) 0.27
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Dongguan) Co., Ltd. 3 Accounts receivable 1,266,821 (Note d) 0.56
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. 3 Accounts receivable 3,590,420 (Note d) 1.60
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Jiangsu) Ltd. 3 Accounts receivable 1,563,620 (Note d) 0.70
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Components (Wujiang) Ltd. 3 Accounts receivable 741,160 (Note d) 0.33
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Video Display System (Wujiang) Ltd. 3 Accounts receivable 566,299 (Note d) 0.25
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Chenzhou) Co., Ltd. 3 Accounts receivable 432,531 (Note d) 0.19
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Chenzhou Delta Technology Co. Ltd. 3 Accounts receivable 123,693 (Note d) 0.06
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Wuhu) Co., Ltd. 3 Accounts receivable 347,003 (Note d) 0.15
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics (Japan), Inc. 3 Accounts receivable 435,980 (Note d) 0.19
1 Delta Electronics Int'l (Singapore) Pte. Ltd. DEI Logistics (USA) Corp. 3 Accounts receivable 4,798,194 (Note d) 2.14
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Vivitek Corporation 3 Accounts receivable 158,125 (Note d) 0.07
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks, Inc. (Taiwan) 3 Accounts receivable 231,068 (Note d) 0.10
1 Delta Electronics Int'l (Singapore) Pte. Ltd. DNI Logistics (USA) Corp. 3 Accounts receivable 3,578,520 (Note d) 1.59
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Networks (Dongguan) Ltd. 3 Accounts receivable 3,319,328 (Note d) 1.48
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Delta Electronics Inc. 2 Accounts receivable 7,303,809 (Note d) 3.25
Table 7-3
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General ledger accountAmount
Transaction
terms
Percentage of consolidated total
operating revenue or total assets
(Note c)
TransactionNumber
(Note a) Company name Counterparty
Relationship
(Note b)
1 Delta Electronics Int'l (Singapore) Pte. Ltd. Deltronics (Netherlands) B.V. 3 Accounts receivable 247,210$ (Note d) 0.11
2 Delta Networks (Dongguan) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 3,525,504 (Note d) 1.57
3 Delta Networks, Inc. (Taiwan) Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 100,443 (Note d) 0.04
3 Delta Networks, Inc. (Taiwan) DNI Logistics (USA) Corp. 3 Accounts receivable 365,182 (Note d) 0.16
4 Delta Electronics (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 1,956,107 (Note d) 0.87
4 Delta Electronics (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 244,545 (Note d) 0.11
5 Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 4,841,958 (Note d) 2.16
5 Delta Electronics Power (Dongguan) Co., Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 451,176 (Note d) 0.20
6 Delta Electronics (Jiangsu) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 2,005,613 (Note d) 0.89
6 Delta Electronics (Jiangsu) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 2,987,699 (Note d) 1.33
7 Delta Electronics Components (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 2,116,465 (Note d) 0.94
7 Delta Electronics Components (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 1,062,595 (Note d) 0.47
8 Delta Electro-Optics (Wujiang) Ltd. Delta Electronics Components (Wujiang) Ltd. 3 Accounts receivable 1,037,025 (Note d) 0.46
9 Delta Video Display System (Wujiang) Ltd. Delta Electronics (Shanghai) Co., Ltd. 3 Accounts receivable 634,678 (Note d) 0.28
9 Delta Video Display System (Wujiang) Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 317,682 (Note d) 0.14
10 Delta Electronics (Wuhu) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 1,101,176 (Note d) 0.49
11 Delta Electronics (Chenzhou) Co., Ltd. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 796,779 (Note d) 0.36
12 Chenzhou Delta Technology Co. Ltd. Delta Electronics Power (Dongguan) Co., Ltd. 3 Accounts receivable 233,013 (Note d) 0.10
12 Chenzhou Delta Technology Co. Ltd. Delta Electronics (Chenzhou) Co., Ltd. 3 Accounts receivable 546,693 (Note d) 0.24
13 Delta Electronics (Shanghai) Co., Ltd. Delta Greentech (China) Co., Ltd. 3 Accounts receivable 3,539,466 (Note d) 1.58
14 Delta Electronics (Japan) Inc. Delta Electronics Int’l (Singapore) Pte. Ltd. 3 Accounts receivable 135,393 (Note d) 0.06
15 Cyntec Co., Ltd. Cyntec International Limited 3 Accounts receivable 310,035 (Note e) 0.14
16 Cyntec (Suzhou) Co. Ltd. Cyntec International Limited 3 Accounts receivable 349,416 (Note e) 0.16
Table 7-4
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General ledger accountAmount
Transaction
terms
Percentage of consolidated total
operating revenue or total assets
(Note c)
TransactionNumber
(Note a) Company name Counterparty
Relationship
(Note b)
17 Cyntec Electronics (Suzhou) Co., Ltd. Cyntec International Limited 3 Accounts receivable 1,021,629$ (Note e) 0.46
18 Cyntec International Limited Cyntec Co., Ltd. 3 Accounts receivable 141,039 (Note e) 0.06
18 Cyntec International Limited Delta Electronics Int'l (Singapore) Pte. Ltd. 3 Accounts receivable 133,243 (Note d) 0.06
19 Cyntec International Limited Cyntec (Suzhou) Co. Ltd. 3 Other accounts receivable 185,160 (Note f) 0.08
19 Cyntec International Limited Cyntec Electronics (Suzhou) Co., Ltd. 3 Other accounts receivable 925,800 (Note f) 0.41
20 Eltek Power Systems AS Eltek MEA DMCC 3 Other accounts receivable 176,567 (Note f) 0.08
20 Eltek Power Systems AS Eltek Management Invest AS 3 Other accounts receivable 182,952 (Note f) 0.08
20 Eltek Power Systems AS Eltek s.r.o. 3 Other accounts receivable 241,661 (Note f) 0.11
20 Eltek Power Systems AS Eltek As 3 Other accounts receivable 277,627 (Note f) 0.12
20 Eltek Power Systems AS Eltek Sistemas de Energia Ind. Com. SA 3 Other accounts receivable 398,005 (Note f) 0.18
21 Eltek Power Ltd. Eltek Power Systems AS 3 Other accounts receivable 132,712 (Note f) 0.06
22 Eltek Inc. Eltek Power Systems AS 3 Other accounts receivable 728,075 (Note f) 0.32
23 Eltek Power Pte Ltd. Eltek Power Systems AS 3 Other accounts receivable 204,052 (Note f) 0.09
24 Eltek Ventures As Eltek Power Systems AS 3 Other accounts receivable 279,352 (Note f) 0.12
Note a: The transaction information of the Company and the consolidated subsidiaries should be noted in column “Number”. The number means:
(1) Parent company is ‘0’
(2).The subsidiaries are numbered in order starting from‘1’.
Note b: Relationship between transaction company and counterparty is classified into the following three categories:
(1) Parent company to subsidiary
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary
consolidated total operating revenues for income statement accounts.
Note d: There is no similar transaction to compare with. It will follow the agreed price and transaction terms and all the credit terms are 75 days.
Note e: There is no similar transaction to compare with. It will follow the agreed price and transaction terms and all the credit terms are 60~90 days.
Note f: Lending of capital
Note g: Only related party transactions in excess of $100 million are disclosed.
Note c: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to
Table 7-5
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Balance as at June
30, 2015
Balance as at
December 31,
2014
Number of sharesOwnership
(%)Book value
Delta Electronics Inc. Delta International Holding Ltd. Cayman Islands Equity investments 8,922,118$ 8,922,118$ 67,680,000 94.00 62,979,028$ 2,407,250$ 2,376,162$ (Note i)
Delta Electronics Inc. Delta Networks Holding Ltd. Cayman Islands Equity investments 1,377,206 1,377,206 39,800,000 100.00 12,629,425 883,284 962,559 (Note i)
Delta Electronics Inc. PreOptix (Hong Kong) Co. Ltd. Hong Kong Equity investments 159,935 159,935 5,250,000 39.62 209,743 966)( 383)(
Delta Electronics Inc. Cyntec Co., Ltd. Taiwan Research, development,
manufacturing and sales of
thin film optic-electronic
devices
12,067,931 12,067,931 1,139,489,778 100.00 27,630,913 1,695,862 1,574,652 (Note i)
Delta Electronics Inc. Delta Electronics Capital Company Taiwan Equity investments 2,500,000 2,500,000 250,000,000 100.00 2,809,891 4,299)( 4,299)(
Delta Electronics Inc. Delta Electronics Int'l (Singapore) Pte.
Ltd.
Singapore Sales of electronics products 7,270 7,270 300,000 100.00 9,191,981 2,884,485 2,385,616 (Note i)
Delta Electronics Inc. DelBio Inc. Taiwan Manufacturing, wholesale
and retail of medical
equipment
800,000 540,000 80,000,000 100.00 130,967 41,703)( 41,703)(
Delta Electronics Inc. Allied Material Technology Corp. Taiwan Manufacturing and sales of
color filter and lease services,
etc.
2,113,913 2,710,152 211,393,725 99.97 2,177,683 33,780 33,770
Delta Electronics Inc. Vitor Technology Inc. Taiwan Research, designing,
development, manufacturing
and sales of intelligent robot
systems and automation
engineering, etc.
79,575 - 2,800,000 100.00 72,005 7,570)( 7,570)(
Delta Electronics Inc. NeoEnergy Microelectronics, Inc. Taiwan Designing and experimenting
on integrated circuit and
information software services
13,135 332,442 1,313,530 83.11 59,609)( 26,281)( 21,843)(
Delta Electronics Inc. Delta Electronics (Thailand) Public Co.,
Ltd.
Thailand Manufacturing and sales of
electronic products
114,615 114,615 69,128,140 5.54 6,520,409 3,068,238 613,879 (Note i and
Note j)
Delta Electronics Inc. Amita Technologies, Inc. Taiwan Manufacturing of lithium
polymer batteries and related
systems
247,066 426,848 8,197,200 26.93 254,470 12,466 920)(
Delta Electronics Inc. Deltronics (Netherlands) B.V. Netherlands Sales of electronic products 900,603 36,723 25,674,091 100.00 951,200 3,085)( 17,342)( (Note i)
Delta Electronics Inc. SYN-TEC AUTOMATION CO., LTD. Taiwan Manufacturing of electronic
parts, etc.
110,250 110,250 11,025,000 70.00 75,123 18,880)( 13,216)(
Delta Electronics Inc. Delta Green Life Co., Ltd. (Formerly:
Vivitek Corporation)
Taiwan Manufacturing of electronic
parts, etc.
135,083 135,083 23,650,000 100.00 112,208 18,054)( 18,054)(
Names, locations and other information of investee companies (not including investees in Mainland China)
Six-month period ended June 30, 2015
Table 8
Delta Electronics Inc.
Expressed in thousands of New Taiwan dollars, except as otherwise indicated
Net profit (loss)
of the investee for
the six-month
period ended June
30, 2015
Investment
income (loss)
recognized
by the Company
for the six-month
period ended
June 30, 2015
NoteInvestorInvestee
Location Main business activities
Initial investment amount Shares held as at June 30, 2015
Table 8-1
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Balance as at June
30, 2015
Balance as at
December 31,
2014
Number of sharesOwnership
(%)Book value
Net profit (loss)
of the investee for
the six-month
period ended June
30, 2015
Investment
income (loss)
recognized
by the Company
for the six-month
period ended
June 30, 2015
NoteInvestorInvestee
Location Main business activities
Initial investment amount Shares held as at June 30, 2015
Delta International Holding Ltd. Delta Electronics International Ltd. Malaysia Sales of electronic products 61,720$ 61,720$ 2,000,000 100.00 4,204,322$ 109,641$ 110,887$ (Note a and
Note i)
Delta International Holding Ltd. Delta Electronics (H.K.) Ltd. Hong Kong Equity investments 10,134,334 10,134,334 2,549,297,600 100.00 31,653,102 2,106,080 2,106,080 (Note a)
Delta International Holding Ltd. DAC Holding (Cayman) Ltd. Cayman Islands Equity investments 498,088 498,088 22,200,000 100.00 354,763 13,097 13,097 (Note a)
Delta International Holding Ltd. Trillion Science, Inc. U.S.A Research on special chemical
materials used in precision
coating process
555,480 555,480 9,000,000 19.78 19,423 65,700)( 14,970)( (Note a)
Delta International Holding Ltd. Delta Electronics (Japan), Inc. Japan Sales of power products,
display solution products,
electronic components,
industrial automation products
and their materials
88,227 88,227 5,600 100.00 260,593 47,322 47,322 (Note a)
Delta International Holding Ltd. Digital Projection International Ltd. Britain Equity investments 353,049 353,049 19,249,667 41.00 251,176 74,778)( 22,732)( (Note a)
Delta International Holding Ltd. PreOptix (HongKong) Co., Ltd. Hong Kong Equity investments 246,880 246,880 8,000,000 60.38 304,872 846)( 511)( (Note a)
Delta International Holding Ltd. Delta Power Sharp Ltd. Hong Kong Operations management and
engineering services
39,909 39,909 10,000,000 100.00 59,325 16)( 16)( (Note a)
Delta International Holding Ltd. DEI Logistics (USA) Corp. U.S.A Warehousing and logistics
services
15,430 15,430 500,000 100.00 122,919 6,506 6,506 (Note a)
Delta International Holding Ltd. Ace Pillar Holding Ltd. Samoa Equity investments 421,408 421,408 2,858,718 100.00 488,071 13,553 7,079 (Note a)
Delta International Holding Ltd. Drake Overseas Financial Investment
Ltd.
British Virgin
Islands
Equity investments - 5,311,510 - - - - 13,378)( (Note a)
Delta International Holding Ltd. Drake Investment (H.K.) Ltd. Hong Kong Equity investments 5,311,510 - 304,504,306 100.00 6,086,290 174,286 105,589 (Note a)
Delta International Holding Ltd. Delta Electronics International Mexico
SA DE C.V.
Mexico Sales of power management
system of industrial
automation product and
telecommunications
equipment
- - 1 - - 7,428)( - (Note a)
Delta International Holding Ltd. Vivitek Corporation U.S.A Sales of projector products 46,290 46,290 9,000,000 100.00 55,558 19,304)( 19,304)( (Note a)
Delta International Holding Ltd. Delta Greentech SGP Pte Ltd. Singapore Equity investments 861,940 861,940 12,175,470 100.00 867,513 28,458 9,047 (Note a)
Delta International Holding Ltd. Delta Electronics Europe Limited Britain Maintenance centre and
providing support service
112,948 112,948 500,000 100.00 109,694 424)( 424)( (Note a)
Table 8-2
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Balance as at June
30, 2015
Balance as at
December 31,
2014
Number of sharesOwnership
(%)Book value
Net profit (loss)
of the investee for
the six-month
period ended June
30, 2015
Investment
income (loss)
recognized
by the Company
for the six-month
period ended
June 30, 2015
NoteInvestorInvestee
Location Main business activities
Initial investment amount Shares held as at June 30, 2015
Delta International Holding Ltd. Boom Treasure Limited Hong Kong Equity investments 2,688,551$ 2,688,551$ 1 100.00 2,686,209$ 88,462$ 24,310$ (Note a)
Delta Electronics (H.K.) Ltd. Delta Electronics International Mexico
SA DE C.V.
Mexico Sales of power management
system of industrial
automation product and
telecommunications
equipment
32,403 32,403 252,002 100.00 971 7,428)( 7,428)( (Note b)
Drake Overseas Financial Investment Ltd. Drake Investment (H.K.) Ltd. Hong Kong Equity investments - 1,204,744 - - - - - (Note c)
Delta International Holding Ltd. Deltronics (Netherlands) B.V. Netherlands Sales of electronic products 1 - 260,416,667 0.00 18,385 3,085)( 18,578 (Note a)
Delta Networks Holding Ltd. Delta Networks, Inc. Cayman Islands Equity investments 5,488,728 5,488,728 1,196,886,000 100.00 5,162,673 864,109 861,249 (Note d)
Delta Networks, Inc. Delta Networks (H.K.) Limited Hong Kong Equity investments 1,080,100 1,080,100 35,000,000 100.00 2,803,597 457,278 457,278 (Note e)
Delta Networks, Inc. Delta Networks, Inc. (Taiwan) Taiwan Manufacturing and sales of
networking system and
peripherals
466,816 466,816 50,040,838 100.00 2,133,568 139,313 139,285 (Note e)
Delta Networks, Inc. Delta Networks International Ltd. Malaysia Trading of networking system
and peripherals
30,860 30,860 1,000,000 100.00 237,064 30,151 267,695 (Note e)
Delta Networks, Inc. DNI Logistics (USA) Corp. U.S.A Trading of networking system
and peripherals
17,160 17,160 500,000 100.00 49,908 1,943 1,943 (Note e)
Cyntec Co., Ltd. Fairview Assets Ltd. Cayman Islands Equity investments 1,112,600 1,112,600 32,620,062 100.00 21,955,242 1,730,733 1,730,733 (Note f)
Fairview Assets Ltd. Grandview Holding Ltd. Cayman Islands Equity investments 6,393,575 6,393,575 207,180,000 100.00 14,228,700 1,729,517 1,729,517 (Note g)
Grandview Holding Ltd. Cyntec International Limited Malaysia Trading 154,300 154,300 5,000,000 100.00 7,459,837 1,592,166 1,575,402 (Note h and
Note i)
Grandview Holding Ltd Cyntec Holding (H.K.) Ltd. Hong Kong Equity investments 6,239,275 6,239,275 202,180,000 100.00 6,764,458 153,612 153,612 (Note h)
Deltronics (Netherlands) B.V.(DEN) Eltek Power Systems AS Norway Equity investments 15,223,268 - 329,205,923 100.00 15,345,393 143,997 40,195 (Note k)
Eltek Power Systems AS Eltek Valere Holding AS Norway Equity investments 374,580 - 96,092,530 96.37 374,580 143,997 40,195 (Note l and
Note m)
Eltek Power Systems AS Networks Holding AS Norway Equity investments 835 - 1,100 100.00 835 - - (Note l)
Eltek Power Systems AS Eltek Venture AS Norway Equity investments 706 - 7,630 100.00 706 - - (Note l)
Table 8-3
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Balance as at June
30, 2015
Balance as at
December 31,
2014
Number of sharesOwnership
(%)Book value
Net profit (loss)
of the investee for
the six-month
period ended June
30, 2015
Investment
income (loss)
recognized
by the Company
for the six-month
period ended
June 30, 2015
NoteInvestorInvestee
Location Main business activities
Initial investment amount Shares held as at June 30, 2015
Eltek Power Systems AS Eltek Management Invest AS Norway Equity investments 29,860$ -$ 2,402,043 100.00 29,860$ -$ -$ (Note l)
Note a: Investment income / loss recognized by Delta International Holding Ltd.
Note b: Investment income / loss recognized by Delta Electronics (H.K.) Ltd.
Note c: Investment income / loss recognized by Drake Overseas Financial Investment Ltd.
Note d: Investment income / loss recognized by Delta Networks Holding Ltd.
Note e: Investment income / loss recognized by Delta Networks, Inc.
Note f: Investment income / loss recognized by Cyntec Co., Ltd.
Note g: Investment income / loss recognized by Fairview Assets Ltd.
Note h: Investment income / loss recognized by Grandview Holding Ltd.
Note i: The investment income /loss is net of the elimination of intercompany transactions.
Note j: The weighted average combined ownership percentage of 20.01%, the investment income /loss is net of the elimination of intercompany transactions.
Note k: Investment income / loss recognized by Deltronics (Netherlands) B.V.
Note l: Investment income / loss recognized by Eltek Power Systems AS.
Note m: Eltek Management Invest AS holds 3,618,016 shares in Eltek Valere Holding AS, which is 3.63% and the shareholding ratio together with Eltek Power Systems AS is 100%.
Table 8-4
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Remitted to
Mainland China
Remitted back
to Taiwan
Delta Electronics (Dongguan) Co.,
Ltd.
Manufacturing and sales of transformers and power
supplies
3,018,417$ Invested by DHK 2,074,748$ -$ -$ 2,074,748$ 239,863$ 94.00 221,679$ 4,210,335$ 298,108$ (Note c and Note v)
Delta Greentech (China) Co., Ltd. Manufacturing and sales of uninterruptible power
supply
2,826,936 Invested by DIH, Ace, Drake
and DGSG
9,008,773 - - 9,008,773 379,673 90.16 328,661 4,489,541 - (Note d and Note u)
Delta Electronics Power
(Dongguan) Co., Ltd.
Manufacturing and sales of power supplies 1,299,206 Invested by DHK 522,151 - - 522,151 249,307 94.00 234,353 3,067,593 414,634 (Note f and Note v)
Delta Electronics (Shanghai) Co.,
Ltd.
Product design and management consulting service, etc. 3,947,607 Invested by DHK - - - - 450,855 94.00 421,467 6,421,408 - (Note j and Note v)
Delta Electronics (Wuhu) Co., Ltd. Manufacturing and sales of power supplies and
transformers
4,135,240 Invested by DHK 174,050 - - 174,050 209,859 94.00 197,316 4,469,999 - (Note k and Note v)
Delta Electronics (Chenzhou) Co.,
Ltd.
Manufacturing and sales of power supplies and
transformers
1,944,180 Invested by DHK - - - - 124,919 94.00 120,927 2,538,977 - (Note m and Note v)
Delta Electronics (Jiangsu) Ltd. Manufacturing and sales of power supplies 1,234,400 Invested by DHK 638,185 - - 638,185 456,209 51.70 244,197 2,033,167 - (Note v)
Delta Electronics Components
(Wujiang) Ltd.
Manufacturing and sales of power supplies 2,740,677 Invested by DHK 638,185 - - 638,185 682,729 51.70 352,735 2,739,984 - (Note g and Note v)
Delta Electro-Optics (Wujiang) Ltd. Manufacturing and sales of peripherals and electronic
control equipments.
894,940 Invested by DHK 398,866 - - 398,866 27,308)( 51.70 95,807 1,377,131 54,445 (Note h and Note v)
Delta Video Display System
(Wujiang) Ltd.
Manufacturing and sales of various projectors 894,940 Invested by DHK 207,410 - - 207,410 93,928 51.70 48,721 811,507 - (Note I and Note v)
Delta Electronics (Wujiang)
Trading Co., Ltd.
Installation, consulting and trading of electronic products 61,720 Invested by DHK 11,603 - - 11,603 1,315 94.00 1,236 225,263 - (Note q and Note v)
Delta Green (Tianjin) Industries
Co., Ltd
Manufacturing and sales of transformers and bluetooth
module
698,979 Invested by DHK 958,215 - - 958,215 24,783)( 94.00 38,021)( 777,119 - (Note p and Note v)
Delta Networks (Dongguan) Ltd. Manufacturing and sales of other radio transmission
apparatus incorporating reception apparatus and other
radio-broadcast receivers, combined with sound
recording or reproducing apparatus
1,080,100 Invested by DNHK 1,379,638 - - 1,379,638 466,110 100.00 466,110 2,702,931 678,920 (Note e and Note w)
Delta Electronics Inc.Information on investments in Mainland China-Basic information
Six-month period ended June 30, 2015
Table 9 Expressed in thousands of New Taiwan dollars, except as otherwise indicated
Note
Accumulated
amount of
remittance from
Taiwan to
Mainland China as
of June 30, 2015
Net income of
investee for the six-
month period ended
June 30, 2015
Ownership held
by Company
(direct or
indirect)
Investment
income (loss)
recognised by
the Company for
the six-month
period ended
June 30, 2015
(Note t)
Book value of
investments in
Mainland China
as of June 30,
2015
Accumulated
amount of
investment
income remitted
back to Taiwan
as of June 30,
2015
Amount remitted from Taiwan to
Mainland China/Amount remitted
back to Taiwan for the six-month
period ended June 30, 2015
Investee in Mainland
China
Main business activities
Paid-in
capital
Investment
method
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of January 1,
2015
Table 9-1
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Remitted to
Mainland China
Remitted back
to Taiwan
Note
Accumulated
amount of
remittance from
Taiwan to
Mainland China as
of June 30, 2015
Net income of
investee for the six-
month period ended
June 30, 2015
Ownership held
by Company
(direct or
indirect)
Investment
income (loss)
recognised by
the Company for
the six-month
period ended
June 30, 2015
(Note t)
Book value of
investments in
Mainland China
as of June 30,
2015
Accumulated
amount of
investment
income remitted
back to Taiwan
as of June 30,
2015
Amount remitted from Taiwan to
Mainland China/Amount remitted
back to Taiwan for the six-month
period ended June 30, 2015
Investee in Mainland
China
Main business activities
Paid-in
capital
Investment
method
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of January 1,
2015
Delta Networks (Shanghai) Ltd. Design of computer software 61,720$ Invested by DNHK 87,471$ -$ -$ 87,471$ 2,711$ 100.00 2,711$ 86,548$ -$ (Note l and Note w)
Delta Networks (Xiamen) Ltd. Operation of radio transmission apparatus, and
automatic data processing, reception, conversion and
transmission or regeneration of voice, images or other
data of the machine, including switches and outers, with
a special program to control a computer or word
processor with memory business
21,602 Invested by DNHK 21,602 - - 21,602 666 100.00 666 4,348 - (Note w)
Cyntec (Suzhou) Co. Ltd Research, development, manufacturing and sales of new-
type electronic components and wholesale, import and
export of similar products
2,005,900 Invested by CHK 1,896,729 - - 1,896,729 115,312 100.00 115,312 2,104,194 - (Note n and Note x)
Cyntec Electronics (Suzhou) Co.,
Ltd.
Research, development, manufacturing and sales of new-
type electronic components (chip components, sensing
elements, hybrid integrated circuits) and wholesale,
import and export of similar products
4,227,820 Invested by CHK 4,227,820 - - 4,227,820 43,145 100.00 43,145 4,692,134 - (Note x)
PreOptix (Jiang Su) Co. Ltd. Manufacturing and sales of lenses and optical engines for
projectors
408,895 Invested by PHK 394,082 - - 394,082 310)( 96.38 296)( 489,963 - (Note o and Note y)
Wuhu Delta Technology Co., Ltd. Manufacturing and sales of transformers and power
supplies
146,822 Invested by DWH - - - - 6,223 94.00 5,850 235,031 - (Note r)
Delta Energy Technology (Wuhu)
Co., Ltd.
Research and development of energy-saving technology,
energy-saving equipment, energy management system
and technology consulting service, etc.
9,954 Invested by DPEC and DWH - - - - 866 94.00 814 8,522 - (Note r)
Chenzhou Delta Technology Co.
Ltd.
Manufacturing and sales of transformers and power
supplies
126,914 Invested by DCZ - - - - 29,996 94.00 29,348 289,082 - (Note r)
Delta Energy Technology
(Chenzhou) Co., Ltd.
Research and development of energy-saving technology,
energy-saving equipment, energy management system
and technology consulting service, etc.
9,954 Invested by DPEC and DCZ - - - - 108 94.00 102 9,317 - (Note r)
Delta Energy Technology
(Dongguan) Co., Ltd.
Research and development of energy-saving technology,
energy-saving equipment, energy management system
and technology consulting service, etc
29,862 Invested by DPEC and DDG - - - - 6,615 94.00 6,219 153,258 - (Note r)
Delta Energy Technology (Wujiang)
Co., Ltd.
Research and development of energy-saving technology,
energy-saving equipment, energy management system
and technology consulting service, etc
19,908 Invested by DPEC and DWO - - - - 172 94.00 161 19,098 - (Note r)
Delta Energy Technology
(Shanghai) Co., Ltd.
Research and development of energy-saving technology,
energy-saving equipment, energy management system
and technology consulting service, etc
49,770 Invested by DPEC and DGC - - - - 2,106)( 90.54 1,907)( 36,269 - (Note r)
DelBio (WUJIANG)., Ltd. Manufacturing, wholesale and retail of medical
equipment
92,580 Invested by DelBio 61,720 30,860 - 92,580 436 100.00 436 70,595 - (Note z)
Delta Electronics (Pingtan) Co.,
Ltd.
Wholesale of electronic and energy-saving equipment 24,885 Invested by DHK 24,174 - - 24,174 1,415)( 94.00 1,330)( 21,641 - (Note v)
Table 9-2
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Remitted to
Mainland China
Remitted back
to Taiwan
Note
Accumulated
amount of
remittance from
Taiwan to
Mainland China as
of June 30, 2015
Net income of
investee for the six-
month period ended
June 30, 2015
Ownership held
by Company
(direct or
indirect)
Investment
income (loss)
recognised by
the Company for
the six-month
period ended
June 30, 2015
(Note t)
Book value of
investments in
Mainland China
as of June 30,
2015
Accumulated
amount of
investment
income remitted
back to Taiwan
as of June 30,
2015
Amount remitted from Taiwan to
Mainland China/Amount remitted
back to Taiwan for the six-month
period ended June 30, 2015
Investee in Mainland
China
Main business activities
Paid-in
capital
Investment
method
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of January 1,
2015
Eltek Energy Technology Manufacturing and sales of power supplies and others 228,364$ Invested by Eltek Valere
Holding AS
-$ 1,156,647$ -$ 1,156,647$ 5,891)($ 100.00 5,891)($ 58,208$ -$ (Note aa)
Note a: The capital was translated based on the capital certified report of the investee companies into New Taiwan Dollars at the average exchange rate of RMB 6.2005 to US$1 and RMB 4.9770 to NT$1.
Note b: The accumulated remittance as of January 1, 2015, remitted or collected this period, accumulated remittance as of June 30, 2015 and investment income remitted back as of June 30, 2015 was translated into New Taiwan Dollars at the average exchange rate of NTD 30.86 to US$1 at the balance sheet date.
Note c: Except for the facility of US$67,231 permitted by Investment Commission, the capitalization of earnings of US$27,081 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note d: Except for the facility of US$291,924 permitted by Investment Commission, the capitalization of earnings of US$980 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note e: Except for the facility of US$44,706 permitted by Investment Commission, the capitalization of earnings of US$11,312 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note f: Except for the facility of US$16,920 permitted by Investment Commission, the capitalization of earnings of US$22,654 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note g: Except for the facility of US$112,004 permitted by Investment Commission, the capitalization of earnings of US$25,235 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note h: Except for the facility of US$99,828 permitted by Investment Commission, the capitalization of earnings of US$2,068 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note i: Except for the facility of US$44,388 permitted by Investment Commission, the capitalization of earnings of US$8,272 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note j: The capitalization of earnings of US$110,401 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note k: Except for the facility of US$5,640 permitted by Investment Commission, the capitalization of earnings of US$120,320 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note l: Except for the facility of US$2,834 permitted by Investment Commission, the capitalization of earnings of US$298 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note m: The earnings transferred to investment in Delta Electronics (Chenzhou) Co., Ltd. is US$59,220 thousand approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) is not included in the Company's investments in Mainland China.
Note n: Except for the facility of US$198,462 permitted by Investment Commission, the capitalization of earnings of US$4,000 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note o: Except for the facility of US$7,520 permitted by Investment Commission, the investment of US$5,250 by PreOptix Co., Ltd. was permitted by Investment Commission.
Note p: Except for the facility of US$31,050 permitted by Investment Commission, the capitalization of earnings of US$265 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note q: Except for the facility of US$376 permitted by Investment Commission, the capitalization of earnings of US$1,504 permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.
Note r: According to the regulations of the Investment Commission, the reinvestment of the investee companies in Mainland China is not required to obtain the approval of the Investment Commission; thus the investment amounts are excluded from the calculation of the Company’s ceiling of investment amount in Mainland China.
Note s: Delta Networks (Wujiang) Ltd., an indirect investment of the Company, was liquidated on June 30, 2011. Return of capital due to liquidation of US$18,000 remitted back had been granted for future reference by Investment Comission on August 28, 2012. The Company’s indirect investment and earnings turned into investment in
Delta Networks (Wujiang) Ltd., originally approved by the Investment Commission of MOEA, were US$17,389 and US$10,802, respectively.
Note t: Investment income (loss) recognition is based on financial statements that are audited and attested by R.O.C. parent company's CPA.
Note u: Jointly invested through Delta International Holding Ltd., Ace Pillar Holding Co., Ltd., Drake Investment (H.K.) Ltd., Delta Greentech SGP Pte Ltd and Boom Treasure Limited.
Note v: Invest through Delta Electronics (H.K.) Ltd.
Note w: Invest through Delta Networks (H.K.) Ltd.
Note x: Invest through Cyntec Holding (H.K.) Ltd.
Note y: Invest through PreOptix (Hong Kong) Co., Ltd.
Note aa: Invest through Deltronics (Netherlands) B.V.
Note z: Invest through DelBio Inc.
Table 9-3
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Company name
Accumulated amount
remitted from Taiwan to
Mainland China as of June
30, 2015
Investment amount
approved by the
Investment Commission
of Ministry of Economic
Affairs (MOEA)
Ceiling of investments
in Mainland China
imposed
by the Investment
Commission of MOEA
Delta Electronics, Inc. (Notes b and c) $ 16,302,987 $ 27,080,880 $ -
Cyntec Co., Ltd. 6,124,549 6,124,549 12,442,817
DelBio Inc. (Note d) 92,580 123,440 78,592
Note a: The accumulated amount remitted out of Taiwan to Mainland China and investment amount approved by the investment commission was translated into New Taiwan Dollars at the average exchange rate of NTD 30.86 to US$1 at the balance sheet date.
Note b: The investment income of US$22,000, US$18,000, US$10,509 and US$14,351 were remitted back on March 11, 2011, June 27, 2012, August 14, 2012, June 24, 2009 and December 29, 2005, respectively, from the investee companies in Mainland China and was permitted by Investment Commission on August 3,
2012, August 28, 2012, July 17, 2009 and January 6, 2006, respectively, which are deductible from the Company’s accumulated amount remitted out of Taiwan to Mainland China.
Note c: According to “Regulation Governing the Approval of Investment or Technical Cooperation in Mainland China”, the Company and Cyntec Co., Ltd. obtained the approval of operation headquarters from Industrial Development Bureau of Ministry of Economic Affairs. There is no ceiling of investment amount.
Note d: Ceiling of $78,592 is calculated based on DelBio Inc.'s net assets as of June 30, 2015. However, ceiling was $123,440 at the time when applying for investments.
The significant purchases, sales, accounts payable and accounts receivable that the Company directly conducted with investee companies in Mainland China as well as those that the Company indirectly conducted with investee companies in Mainland China through Delta Electronics International Ltd. (DEIL-Labuan), Delta
Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG), Delta Networks International Ltd. (DNIL-Labuan) and Cyntec International Ltd. (CIL-Labuan) for the six-month period ended June 30, 2015 are shown in Notes 13.(1) G and H.
Table 9-4